(5 minute read)
Welcome to Day 9 of the Twelve Days of Giving! Boss-muse Brooke Wall is making a cameo once again; when I’m obsessed, I’m obsessed. She’s the definition of ethical capitalization: she knows how to work her resources wisely and support those in her sphere sufficiently and positively while doing it. Think about it: you can throw together any business idea or try to “make things work” for a period of time, however you’ll find that your concept’s legs will run weak long term unless you can actually maximizing your time, earnings and impact (if that’s what you’re in business for).
The long and the short of it boils down to management and allocation. The efficient management of one’s budget & cash flow, the efficient allocation of time, and the efficient distribution & investment of resources. This applies just as seamlessly to one’s personal world as it does one’s professional life.
Capitalization simply means you’re fucking owning the situation. Ethical capitalization (perhaps I just made that up?) is reaping the maximum benefit of any opportunity, not at the disadvantage or expense of someone else’s circumstance.
- You can capitalize on the fact that you got to spin class early and are going to sit front and center and feed of the instructor’s energy. Use your early-arrival and the available space to your advantage.
- You can capitalize on the fact that half your industry peers are hung over on a Friday morning from Thursday’s extended happy hour and you can go shmooze and relationship-build with the execs that are in town because you’re not hung over.
- You can capitalize on your intelligence, acts of generosity, talents, experience, your irresistible charm & wit, survival skills, well-travelled depth of culture, etc. and the list goes on.
- You can capitalize on the fact that you’re made efficient use of resources past and now you have a cushion to:
- a) Invest in the market
- b) Invest in expanding your business
- c) Invest in an undervalued opportunity that came out of the sky
- d) Buy a huge piece of an investment and allocate a portion to someone else who can’t afford it but wants in – and do some loan sharking for the short-term. Yeah, you can do that.
Back to business and let’s blow the above hypothetical examples to the wind. How does one host the foundation to invite these opportunities of leveraged fortune into their world? They do the work – efficiently and effectively.
If I haven’t spelled it out clearly enough for you, this is what I’m here to help you do: efficiently run your cash flow position professionally and personally. Once you learn the steps and start putting my steps into motion, you’ll begin the capitalization process in all corners of your sphere.
Creating and managing one’s budget and cash flow allows everything else to efficiently fall into place, for space to be made for future opportunities and for a risk management strategy (cushion to catch you when something unexpectedly comes yours way). You’re creating a snap shot of what’s going on, what you need, how to measure it, and how to achieve it (and when).
When you are making efficient use of resources (human capital, inventory, deal flow, etc.) and efficient use of time (knowing when and where the resources are being allocated, where money is leaving you and when you’re getting paid), everything else can be planned for, banked on and strategically fall into place. Yes, you’ll have to show up and do the work, though you’ll at least be well on the road to ethically capitalizing on your situation – let’s call it your cash flow strategy and strategic plan.
Say it with me, when the follow 4 points of strategy and management are in place, you can ethically capitalize on anything (your):
- Cash Flow
- Resource Distribution
- Time Allocation
Tips to master the above 4 points and learn how to ethically capitalize on anything:
- Create a budget of monthly expenses
- Create a year long cash flow projection (income & expenses across 12 months)
- Look to where you’re distributing your resources (money, human capital, etc., anything that helps generate you revenue)
- Look to where you’re literally spending your time (your relationships and income generating activities).
Running an effective ship full of various departments and divisions is not unlike running a one, two or three person entrepreneurial show. Without the above 4 pieces in place, your growth and sustainable strategy in income is mildly afloat.
So here’s the question: do you want to keep doing what you’ve been doing and staying in the same spot you’re currrently parked in? Or, do you want to move forward with me as your running buddy helping you every step of the way to achieve your big picture goals?
Ask me anything! I’m here to help.
photo source: Into The Gloss