Successful Entrepreneurs Understand Cash Flow

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Weekday Wisdom, Episode 17

What’s your relationship with cash flow? Are you spending money? Or are you investing it? That’s what I’m going to talk about in today’s Weekday Wisdom.

Successful entrepreneurs understand cash flow

Today I’m sharing the next installment of my Facebook Live series on traits of successful entrepreneurs. The third trait is that they understand cash flow.

Basically successful entrepreneurs understand that there’s cash flow. Now, by understanding cash flow, I don’t mean that they know how to do Excel spreadsheets or Quicken or any of that accounting stuff. That’s not what I’m talking about. I’m talking about the bigger picture here.

What I’m talking about is that money comes and it goes. And that’s a good thing.

For example, people with an employee mindset tend to think of income and expenses. They spend their money when it goes out. Whereas entrepreneurs who are successful think of income and investment. They don’t spend their money, they invest it.

They also do that with their time. They don’t spend time, they invest it.

This is the key because when you think about spending money, you’re thinking about, “I’ll buy an ice cream. I’ll consume it. It’s gone.” You’re not thinking about any return on that spending. You’re buying something. You’re buying your utilities. Your buying your dinner. You’re buying things. You’re spending money.

Whereas entrepreneurs invest. They expect a return on any money they spend. So, when they invest in utilities, they are investing in their own comfort. They invest their time. When they consider performing a specific task, they ask, “Will it help me in some way?”

I don’t mean that it’s always all about business investments. Sometimes you’re investing in yourself. Sometimes, you invest money because it will give you a return on investment in business assets. And sometimes it will make you feel better.

Here’s another example: With the Facebook lives I did every day for a 21-Day Facebook Live Challenge, I could have thought of it as, “I’m just spending my time just for the challenge.” However, I decided not to do it that way. I decided to invest my time in creating assets where I talk about what I do in my business. And, at the same time, I’m serving my audience. I’m helping my audience understand new topics. And, I’m also helping myself hone my message because this is a new direction I’m going in for my business.

Moving from Employee to Entrepreneur Mindset Around Money

How do you move from thinking about spending your money to investing it? First, you decide to do it. Once you decide, you start consciously using the word. For example, I’m investing my money in this ice cream right now because it will make me feel good. I’m investing my money in this class because it will help me better perform this task better. I’m investing my time in watching the Weekday Wisdom because Carma is going to give me some really good information that will help me in my business.

Change your words, you’ll change your mindset.

If you start thinking more in terms of investing than spending, and understanding that cash flow goes out and back in and that’s a good thing (because sometimes when cash goes out, even more comes back in), then you’ve made the leap from an employee mindset to an entrepreneurial mindset.

change your mindset flow chart illustration

Remember:
Don’t box yourself in.
Spread your wings and fly.
You — yes you! — are capable of more than you know.

Please post a comment below If you enjoyed this episode of the Weekday Wisdom, comment below. If you have questions you’d like me to answer in future videos, comment below. Let me know what you think about today’s episode, previous episodes or even just ideas for future episodes. I really do want to hear from you because I want the Weekday Wisdom to be something that you value and look forward to watching.

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About the author

Carma Spence, The Own Your Awesome Mentor, is fiercely committed to guiding women to Owning their Awesome and turning it into a profitable business. She is masterful at helping her clients see what is possible for them and supporting them on the journey from where they are to where they want to be, releasing the Mind Goblins of self-doubt, self-sabotage and second-guessing that keep them stuck.

With 20+ years experience in marketing communications and public relations, natural intuitive skills and certification in using some of the most effective transformational coaching tools available, Carma’s mission and commitment is to unleash the inner power every woman entrepreneur possesses so they can boldly go out into the world, transforming the fabric of people’s lives in meaningful and positive ways.

You can find her on Facebook, Twitter, and LinkedIn.