Updated: Feb 13, 2020
Would you rather receive $1,000,000 upfront or 1 penny doubled each day for 30 days? At first glance, most of us would take the cool million today; few would give the penny much thought. Immediate gratification is hard-wired into all of us to some level. Eyes focus on all of the 0’s after the 1 and it’s hard not to take that deal.
Business is no different; many models are built to be transactional in nature; primarily driven by mark-ups and volume (for products) and commissions and fees (for services). Indeed, transactions bring in cash, cash pays bills, bills keep the lights on, and the business prospering. Anything left over at the end of each month/quarter/year (after taxes) becomes profit. Business is good as long as new sales keep coming in month after month to cover overhead. When business inevitably slows down, bringing in that cash gets harder, and eventually tough decisions need to be made. We’ve all heard the saying “Cash is King” - I would offer a slightly different version…
Cash FLOW is King.
See, it’s my experience that cash itself doesn’t solve long-term issues.
If you sell a product – can you add a service plan/warranty plan/upgrade plan to your offering and create a long-term value add proposition after the initial sale?
If you sell a service – can you reposition yourself to become an ongoing provider to your clients? Can you bundle your service as a monthly plan?
Imagine if you could take even 30% of your current revenue and you could ensure it came in every month for the next X number of years?
How great would it feel to know that by 8am each morning the entirety of your overhead for the day is already covered?
How would it change your approach and outlook to your business or life?
You would have more time to focus on actually building the business, other income streams, or, and to some most importantly, spend time with those you love.
Remember that penny?
After 30 days of focused effort it becomes $5,368,709.12
To Your Success,
Marcin has been instrumental in building several businesses including commercial & multi family real estate investment partnerships, a consulting practice and a smart home security business serving customers nationwide. Marcin has secured over $100MM in growth capital for various businesses and has collectively spoken in front of thousands of entrepreneurs, business owners, investors and those just starting to explore living life on their own terms. Outside the office Marcin can be found at the gym lifting heavy things or on the road zipping along on an extended bicycle ride.
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