Read Time: 8 Minutes
Boom. The first 12 weeks of the year are done.
How much profit did you generate?
How much do you want to create next quarter?
How will you increase that profitability?
In today’s post, we’re going to be talking about one of my SIGNATURE tools to figure out how we are going to multiply our moneys to make magic!
We’re talking about the Cashflow Distribution Planner.
Today’s interactive post invites you to explore the 6 areas to re-invest the excess cashflow you generated in the last 12 weeks to increase your potential for next quarter.
Before getting started, I will disclaim that I am not a CPA and I use the word Cashflow liberally.
In your financial statements, you have a document called the Cashflow Statement that includes flows of money across Operations, Investing and Financing areas of your business.
I associate the term Cashflow as the result from building epic systems that create Freedom, Love, and Opportunities to Win.
Below are the 6 areas we’ll invite you to consider distributing cashflow so you can increase your potential for next quarter.
- Paying You
- Promotional Platform
- Execution & Productivity
- Training & Consulting
- Technology & Software
- Customer Experience
You’re stability (emotionally and financially) is the most critical element of this whole entrepreneurship journey.
Without you there’s no company (for now at least).
Because it’s very hard to feel abundance and open-ness when your debts are high, this is perhaps the most important element to pour profits into at the end of the quarter (or month).
Once you are feeling secure with paying yourself, you can move on to any of the next 5 areas
The Promotional Platform you are building is a multi-pronged digital spider web that stretches across the vast internets to attract your ideal collaborators.
Your platform includes videos (both short and long-form), funnels, SEO, advertisements, graphics, illustrations, eBooks, and any other content that is created for your audience to learn more about how you can change their lives.
With today’s environment shifting more to video, the cost of creating is increasing.
You can choose which parts of your promotional platform you wish to invest in at the right time.
When your revenue/profitability increases even more, you can bring in a team to execute on this area for you, which brings us to our next point
Execution & Productivity
A Virtual Assistant can unlock superpowers you didn’t realize you had.
They can achieve the rote low-value tasks that YOU can delegate.
Tasks like bookkeeping, creating social media posts, writing first drafts of blogs.
Ensure you are prepared (read the 3 steps to consider) before making your first hire.
Eventually, this VA may become a full time team member that will accelerate how your company grows.
Training & Consulting
Investing in consulting services will help you solve hyper specific problems that a Virtual Assistant or your team member may not be aware of.
This can include:
- Learning how to use new tools
- Building automations for certain parts of your business
- Swiping content creation frameworks to reduce your cycle times by half
Hyper specialized training/consulting services are expensive, and they are worth it because they create multiples of time in the long-run.
In order to bring the cost down of services (i.e. content creation, accounting, etc…), entrepreneurs have built companies which brings us to the next category
Technology & Software
There are game-changing companies out there that have created technology to automate time consuming tasks such as accounting, marketing, training, and customer experience.
Investing in technology, such as ConvertKit, Notion, Circle, or any other tool to run your business will give you back your sanity.
Maybe you’ve hired a team and they have to deal with the problems of manual tasks.
Invest in their growth through software and their performance (and morale) will sky rocket
While the experience will look different for every business on the surface, it’s pretty similar underneath.
Customers want to feel seen, heard, and appreciated.
In my business, I integrate hospitality into every welcome gift when clients sign up for a course or join my mastermind.
This small action enhances the customer experience and reinforces the values I created for my company!
Consider investing in your customer experience which increases your NPS and will only result in positive experiences (shout outs, testimonials, referrals, etc…)
Now that you’ve learned about each category, consider filling out the worksheet in the template that you duplicated and decide how you will reinvest into your business across the 6 categories.
Last week, I wrote about developing confidence through Leading Indicators. The investments across the above 6 areas will only increase the amount of Leading activities that will be executed in the next quarter.
Although Cashflow is a lagging indicator, we can expect to see that number increase with through the investment we are making in our…businesses 🚀
If you have any questions about how to apply the Cashflow Distribution Planner in your business, feel free to send me a message.
Thanks for reading, Ernesto
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