How to Face Tough Financial Decisions
You may not know this about me, but in my early 20s I was an aspiring rockstar. For 2 years I took my bass guitar and long hair on the road and toured the country. It was an absolute blast, but didn't pay a lot. We were lucky if we made enough money to get us to the next gig. Before our first tour I decided to get a credit card (you know, just in case). It was my safety net. Here's the funny thing about a safety net: when we know it's there, we tend to use it. If a tightrope walker has a net and they feel themselves tilting, at some point they will give in and fall. This way they have a "controlled fall" and can better control their landing, which reduces impact. Without the net, falling isn't an option. When they feel themselves tilting, they must find a way to stay on that rope. So when faced with a financial decision, there's one small thing you can do: remove the safety net and take debt off the table.
This forces us into a place of innovation. If debt isn't a choice, how will you come up with the money to solve the problem? After returning home from our first tour, my credit card had a balance of a couple thousand dollars. I used the net quite a bit and came home with less money than I left with. The next tour I didn't use the credit card (mostly because it was maxed out). When we didn't have the cash to cover an expense, we had to get innovative because debt wasn't an option. So, instead, we arrived to our show about 6 hours early and went to the mall. With CDs in hand, we stopped people and let them listen to samples of our music on a walkman. We wouldn't leave until we'd sold every CD we walked in with. The next time you're faced with a decision in your business, I want you to ask yourself this question: "If debt wasn't a choice, how could we solve this problem?"
As a profit coach, I help my clients strategize their options. If you truly want to take debt off the table, I'd love to help you discover innovative ways to manage your cash. Schedule a free coaching call.