I tell people I won an ovarian lottery and they don’t understand. I am blessed and lucky to have been birthed by a Business savvy Ijebu woman whose education did not determine her destination. From the tender age of 9, I’d learnt from my Mum that cash flow is the king of all success and that the lack of it could destroy any vision.
My Mum is a trader, yet she has both commercial and residential assets that generate annual and monthly cash flow for her, which many times, supports her CORE business. This also stands true in the game of monopoly. Asset acquisition and cash flow management is the key to winning. You can own all the big houses and hotels in Mayfair, but without the consistent cash flow from your rail-stations, you might sell your assets to settle your bills.
The absence of this wisdom is the bane of many failed billionaires, businessmen and previously known successful businesses in the world. Many people own assets but lack the cash flow to propel their businesses and help service their daily responsibilities, family engagements, salaries etc. According to billionaire real estate mogul, Sam Zell;
”I had billions in assets but I couldn’t pay salaries and meet monthly obligations of 3.7m USD this made me change my entire business model into buying consistent cash generating assets”
In 2002, I created MotoFinance, a microcredit company that supported SMEs. I had a major Venture Capital focus which brought in millions, but every now and then, the support of Motofinance gave me the capacity to be financially flexible. I was generating a minimum of 35,000 Euros in cash monthly. I was just 22 and that gave me consistency among my peers. I was never out of cash and even when I was, I didn’t do any major deal in my core business in 1 year. I was financially consistent because MotoFinance always had my back.
This is most important for every entrepreneur. In as much as you want those big businesses and huge sums of money, you must create a business that pays you a dividend or generates consistent cash flow. The inability to recognize this is a vital boost to your success.
Watch out for ”The S” Luxury – Hospitality with Affordable pricing.
NOTE: I am interested in knowing how this inspires you and what your next move is in the creation of cash flow or SIDE-CHICK business.