In the direct selling industry there are a number of areas that you can invest money into to enhance and improve your opportunity or your personal productivity. However, simply because something is ‘good for your business’, does not mean it is always a ‘good time’ for your business.
Novice
Novice direct sellers often jump overboard and ‘sign-up’ for ‘everything’ without thinking things through. Now, given they have a solid gameplan in place and properly work in execution; it can pay off. But more times than not, I have seen the novice, over-extend themselves financially. This can ultimately leave a negative experience simply because of poor understanding of what they ‘really’ need, not what is simply being promoted at that time. Remember you are in business to MAKE MONEY! Be smart on how and where you spend it!
Success
Whereas, successful direct sellers; leverage their cashflow intelligently thru proper analysis of revenues and expenses and the corresponding priorities. They learn how to make their money work for them. They learn how to perceive and respond to opportunities from a strategic position as it relates to their long-term business plan rather than simply reacting emotionally for a short-term result.
Understanding cashflow is vital to any business, whether brick n’ mortar, online, or direct selling. Cashflow is a vital pulse to keep your opportunity viable and healthy.
“But I got into direct selling BECAUSE I don’t HAVE any money” is a response I hear when I coach on the importance of proper cashflow management. Cashflow management isn’t about excess money, it is about understanding what you are doing with the money you currently have.
I will continue exploring this important direct selling topic in upcoming blog post. Stay tune!
Eileen O'Neill says:
Great advice Mark.
I think the novice feels their ignorance, or should I say lack of expertise, so much that they want to learn all that they can as quickly as they can….
Here is where the value of a real mentor comes in, don’t you think? To help the apprentice in the biz to understand that we have to nurture our funds carefully, and wisely – and at times with calculated risk ?
Eileen
YouTube Marketing – Highlights of Greg Jarboe’s Talk at the Social Media Success Summit 2010
17th May 2010 at 7:07 am
Tim Van Milligan says:
Cashflow is the lifeblood of a business. A lot of succssful companies have bit the dust, not because they didn’t have sales, but because the cash from those sales wasn’t flowing in fast enough. It almost happened to my company several years ago. Having a good coach like you is important to understanding the financials of your company.
Tim Van Milligan, helping you Make Money Online, God’s Way!
17th May 2010 at 2:45 pm
Lisa McLellan says:
I would be the Novice you spoke of – getting all excited and spending too much money and finding myself overextended financially and looking at it all as a negative experience. Yup, that would be me!
Lisa McLellan
Babysitting Services, Nanny Services, and Nanny agencies
17th May 2010 at 3:04 pm
Trisha Chambers says:
Lisa, you’re funny. But, that could be me as well!
17th May 2010 at 7:01 pm
Mike Norris says:
Controlling the cash you have is one of the most important things I have ever learned. It took awhile to learn this also.
Mike
http://www.ColumbiaSafetyProducts.com
17th May 2010 at 8:42 pm
Jennifer Battaglino says:
I believe I’m the novice as well… figuring I need to do something, take a risk in order to be a success but then extending myself too far.
jen B
17th May 2010 at 9:50 pm
michael c says:
Wow – you are the first direct seller to be a proponent of “bon’t buy everything” I have met.
you sound very interested in seeing your people succeed.
Michael
http://datingguruhq.com
17th May 2010 at 10:06 pm
bryan says:
Cash flow is very important to every business…whether it’s a personal one or a as you said brick and motor. It sometimes better to dip your toe in so you can be successful in the long run.
17th May 2010 at 10:21 pm
Michael D Walker says:
I’ve been guilty of this as well. The best advice I heard from someone is when you think you want to buy something for your business or even your personal life, can you sit down & write out on paper exactly what you intend to do with the item & how will it benefit your life.
Michael
The Success Secrets
17th May 2010 at 6:45 am
Dale Bell says:
I have helped several people get into business and you could not be more right the novice wants to go out and buy as much as possible. I have found that they think if they have all the products they will look more successful. What happens is they owe alot of money and get discouraged and quit.
17th May 2010 at 9:43 am
Rob Northrup says:
This is so critical, I wrote an article on this very subject last year
C is for Cashflow
So many businesses are under-capitalized, this is how my father’s business failed in the Carter years. He got a big order and didn’t have the capital to build it. And he didn’t ask for a large enough downpayment.
Seize the Day,
Rob
17th May 2010 at 10:22 am
Scott Sylvan Bell says:
Having a good game plan for working in any business is important. It doesn’t matter if the company is a start up or a brick and mortar company. It is easy to get caught up with something new and buy everything that a direct selling company has to offer.
Scott Sylvan Bell
Now go implement!
17th May 2010 at 11:32 am
Vegas Dating Expert says:
Hi Mark,
It sounds like especially for the direct selling novice that seeking out the good and wise guidance of a good mentor can really make a difference when it comes to actually earning money and not just over spending money, yes?
Happy Dating and Relationships,
April Braswell
Christian Dating Expert and Coach
17th May 2010 at 10:01 pm