The Bottom Line series – 4. Commonly asked questions Building a Cash Rich Business
Commonly asked questions about Building a Cash Rich Business:
I built up some debt over the years trying to keep things afloat. How do I get out of that debt while still building my War Chest?
At the Cash Rich Business workshop, we’ll give you a plan to rapidly pay down your debt that works WITH your human behaviours not against it.
What if after making a contribution to my war chest, there is not enough money leftover to cover expenses?
This is your business screaming out to you saying that you can’t afford these things. At the cash-rich business workshop, we’ll do an assessment on your business so you know exactly how much more or less you should be paying in 4 areas.
How much more (or less) you should be paying yourself as Profit.
How much more (or less) you should be paying yourself as an Owner's Salary.
How much more (or less) you should be paying in Tax.
How much more (or less) you should be paying as Operating Expenses.
In fact, in the Cash Rich Business workshop, you’ll walk away knowing exactly how every dollar coming in should be distributed to these four areas (Profit, Owners Pay, Tax & Expenses) in order to become a Cash Rich Business.
Which brings me to the next question...
But I’m just starting out in Business, is this Cash Rich Business methodology still appropriate for me?
Which I’ll answer with another question, what do you think would be easier, to do things the old way. The Sales minus Expenses = Profit as leftovers way. Or would you like to start with your ideal allocation from day 1?
If you’re not in a position to come to the Workshop but you love what we’re about, I’d love an email to email@example.com with feedback on today’s session.
Now that’s the logical part out of the way. That all makes sense.
What would happen now is your expenses would become a smaller plate. We’d have less available. And we could continue our original behaviour of consuming it all.
It would force us to be more innovative. It would force us to return to our entrepreneurial roots, and we’d figure out how to get it all done with fewer expenses.
If we take our profit first, we can use Parkinson’s law for good, instead of for bad. All we need to do is spend less than we make! But we don’t do it… We have to exploit our natural behaviour. We have to leverage how we naturally behave.