Rich and Relaxed: Building High Cash Flow Companies

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Rich and Relaxed: Building High Cash Flow Companies

The rich and relaxed own high cash flow companies, it gives them the flexibility to invest, take risks and effectively plan the future. When you can reconcile your present needs with your future needs — life gets a lot better. The answer is cash flow.

I've analyzed 1000s of business and built 2 companies myself. During this process I realized that the happy and successful entrepreneurs have companies that share these 3 traits:

(trust me I've done it the wrong way — it sucks.)

Low Overhead:

Let expenses get out of control and you'll despise your business. This is exactly how it happens...

With bills to cover the logical step is to say "yes!" to every opportunity that comes your way. After all, money is green, right? Wrong! Servicing one-off customers has unintended consequences like lack of focus, low scalability and slow growth. That extra revenue never finds its way to the bottom line and only makes your overhead woes worse.

It's a vicious cycle — here's how to avoid:

• Service ideal customers only

• Use vendors or overseas talent ($5-10/hr.)

• Only scale with profitable cash flow (no or minimal debt!)

• 1-2 marketing channels (3-5 channels means you're average everywhere)

• Hire FTE's only when ready (there are TONS of hidden costs)

Recurring Revenue:

Imagine starting next month with $25k or $100K already booked? That's the power of recurring revenue — acquire a customer once and get paid multiple times. Growing your business becomes much easier (and more valuable) when compounding works for you.

The most relaxed business owners I've met have loads of recurring revenue — it's the only guaranteed way to lower your blood pressure as an entrepreneur.

Business models with recurring revenue:

• Agency business

• Software-as-a-Service

• Home service (annual/seasonal contracts)

• Regulatory requirements (scheduled certifications)

• Government contracts

• Subscription/Memberships

Lock in future revenue — and then keeping adding more.

Productizable:

Build a product or service that can be sold to 10,000+ customers. There may be slight alterations but 90% of the delivery should be identical. Great businesses increase marginal cash flow with each new customer added. Without a scalable offering adding new customers will actually lower your profit per customer.

Doing more work for less money isn't smart.

Summary:

What's the point in getting rich if you can't relax and enjoy it? Build your company intentionally in a way that improves your financial standing and overall happiness now and in the future.

This is all you need:

• Low overhead

• Predictable recurring revenue

• Productizable offering

SEO Tip of the Week:

Use Google Search Console to uncover keywords your site is already ranking for and you'll be able improve their position faster. Use this process to get started:

Log into Google Search Console...

• Scroll through "queries" on the Google Results tab

• Identify keywords with low click through but high impressions

• Sort by page (to see which pages the keyword ranks)

• Google the keyword to see top ranking content and make yours better / more engaging.

• Insert keyword in the on-page elements (title, meta description, h1, h2, internal links)

• Drive backlinks with the target keyword as the anchor text

Then track the results in Search Console — we'll circle back on this keyword in a few weeks. We should see:

• More impressions

• More clicks

• Higher average ranking

• Better CTR

How you can work with Barrett:

Brightline Media:

My SEO and Backlinking service Brightline Media has serviced 100+ clients over 5 years. We're a boutique firm focused improving business outcomes by dominating Google. Check out the site here. 

Please feel free to email me at [email protected] with any questions, feedback, ideas or opportunities!