#254: Cash Flow Management: How To Never Run Out Of Money | Back To Basics
We all know that the freelancing world is thrilling, fulfilling, and at times, let's be real, a bit terrifying. One of the most daunting parts of freelancing (and one that I've grappled with myself) is cash flow management.
In today's episode, we're diving deep into this crucial topic. The one thing I want you to take away from this episode is how to skillfully manage your cash flow so you never have to see your bank balance hit zero.
I'm sure you've heard this saying before: "Businesses don't fail, they simply run out of money".
This isn't just some platitude, it's backed up by data.
A study cited by Business Insider tells us that 82% of small businesses (freelancers included) fail because of cash flow issues. That's right - they ran out of money. That's why today's episode is so crucial.
As someone who's seen my income swing wildly from one month to the next (like when I made $20,000 in January 2015, then just $1,200 in February 2015), I've learned first-hand the stress of getting this wrong.
You might be thinking, "But Brian, I'm just a freelancer. I don't have a big business with tons of employees and overheads. Do I really need to worry about cash flow?"
The answer is a resounding YES.
It doesn't matter if you're a solo freelancer or a big business, managing your cash flow is vital to keeping your business afloat and making sure you're not living paycheck to paycheck.
In this episode you’ll discover:
- The detrimental effect of fluctuating income on a small business
- Why freelancers need to invoice quickly and accurately
- Building up a strong cash position to avoid cash flow issues
- How to avoid your business shutting down
- Collecting payments for unpaid invoices
- Why waiting for payments is killing your business
- Being responsible with credit
For full show notes, visit https://6figurecreative.com/254