From: http://www.bizjournals.com/

Get ready to create cash flow. We’re all going to need it, regardless of age, employment or economic status, including the 1 percent. After all, positive cash flow at work and at home is good. Negative cash flow is bad. And yes, even the 1 percent change how they manage their money during times like this.

Although it hurts to lose cash flow, a small business, career, assets, and personal income, most of us reinvent ourselves and bounce back. We change jobs or adapt in our small business. We figure it out. Now, with plenty of financial experts warning us that further tough times are coming, it’s time to figure out how to keep cash flowing.

What’s really going on? Stock market prices tanked hard the first two weeks of 2016. If you thought Greece’s financial troubles were bad, just take a look right now at Brazil— broke and unable to repay billions in loans. China? No party. Europe? Overrun. Middle East? War.

Governments aren’t the only institutions facing financial collapse; the Financial Times revealed in December 2015 that Wells Fargo had warned analysts of massive risk building in billions of energy loans. These loans have since gone bad. There’s a longer list of financial woes confronting us at home and internationally. My sense is we’re just getting warmed up.

Cash Flow is Critical

Does it hurt more to lose assets, cash flow or income? They all hurt. Taking a 40 percent or bigger hit on the value of your house, 401(k), stocks, bonds and mutual funds may sting for a while, but losing 40 percent or more of your cash flow really hurts. It hurts in the now. That’s another reason a hyper-focus on creating cash flow is so important now, especially with assets and prices under severe pressure and the stock market pending free fall.

If cash is king, then I submit that cash flow is queen — and she’s the one who’s really calling the shots in the kingdom. Creating positive, healthy small business cash flow and maintaining personal income is the secret to getting through the worst of economic times, even it means you have to barter. Yes, remember the Dark Ages? Barter. Tradesmen like the blacksmith traded time and talent for coin, or more likely, food.

How did I figure this out? I’m still figuring it out, but the truth is the most important schooling I got was the mistakes I made in business — investing and taking too much risk at certain times. I didn’t know what I didn’t know and I got better at it each step of the way, just like you.

It’s possible to create new, positive cash flow in tough times. I know because I’ve done it just like millions of other people. For example, I had a great year in 2008 while most people were heading for the hills, buying bulk ammo and stockpiling freeze-dried food.

Priorities Matter

While I could own and operate a bigger company with lots of employees and other moving parts, I choose a very simple professional and personal life. I am a knowledge worker. I sell a consulting service, workshops, training and coaching programs in high demand for digital, content and marketing automation. Why? Because the work I do generates leads and customers for small businesses. I keep my overhead low. I choose my clients. Life is good because cash flows.

Is this lucky? Definitely there is luck. But it’s more that I am blessed to have worked hard at this for the last 30 years. That’s what it takes. Plus, it’s what I love to do. Then the cash flows.

Will I have a great 2016, also? Yes, if I keep doing what I’m doing. Will you? Yes, if you focus on the following:

1. Stay small and remain lean financially.
2. Focus on creative ways to solve other people’s problems.
3. Work for joy. The money comes.
4. Take great care of your body, mind and soul. (It’s a marathon.)
5. Keep it simple by focusing on what you do best. (Delegate the rest.)

There’s more to it than this, but this is a great list to start with if you’re thinking about making a move to create more stable cash flow for yourself. While this description is overly simplistic, it works for me. I tend to sleep well at night.

You can also create a simple life and small business doing what you love. You can also create an endless stream of income as long as you are graced with another breath, a sound mind, and (hopefully) big bandwidth with access to a computer you know how to use. Being able to wake up and create cash flow is freedom, forever.

No Cinch

Please don’t get the impression that creating cash flow in a small business is easy. Most people can and never will pull it off. Most will never take the first step, let alone endure the many perils that await us. Those who are able to start, fund and build a small business from scratch are special human beings—- the real producers of new innovation, jobs, personal income and wealth, right down to the Little League uniforms we get to buy our kids.

Creating new, positive cash flow starts with an idea that leads to a small business, selling a product or a service, even if it’s as simple as cleaning windows, homes and offices. Again, you don’t need to be among the world’s most-gifted entrepreneurs or have tons of investor money to create cash flow.

Small business owners are not immune to tough economic times. We’re just more adept at grinding through them. Too often we look at the failure stats. They’re harsh, for sure. But look at the success stories instead. The best of us create companies like SpaceX. Elon Musk proves that putting it all on the line can be rewarding, even though you may have to zero out your bank account and scrape through the rough times like he did.

The rest of us are mere mortals and we sell a product or service to create cash flow. Almost 30 million small business owners live in America and the vast majority have no employees. Many of us are small businesses of one. Yet, small businesses in America account collectively for roughly 60 percent of the jobs. Go small business, go!

Whether you believe we’re headed into a serious downturn in the economy or not, you don’t have to be a super-hero entrepreneur like Elon Musk to create cash flow in your business. What you do have to do is maintain a “builder” and “investor” mindset and focus on working hard to sell your product or service for a profit. This is how you create cash flow and hopefully enough profit to pay yourself. You also have to know how to stay small and operate a lean small business — meaning you have to do 100 percent of the work!

How can you learn if not by taking this leap of faith yourself now? Learn from other people. Read, hire a coach or mentor and commit to learning. Never stop learning. Whether you have the desire and skill to work for yourself or not, creating cash flow is the most important thing you can focus on right now other than reducing or eliminating debt. Eliminating debt is critical. Interest rates may rise, which makes the debt service — the cost of paying the debt back — higher. Higher interest payments cut into your cash flow.

Keep Learning

If this sounds like Greek to you, maybe it’s time to beef up your financial literacy. Being financially illiterate is extremely hazardous to your wealth. If you have bandwidth and a device to get online you can learn more about how to create cash flow, even in your personal life. If you treat your family or personal finances like a responsible business owner, and you keep building your financial smarts ,you dramatically increase the odds of remaining self-sufficient, something nearly 40 million Americans fail to do.

Can you create cash flow for yourself and your family regardless of what the economy, your friends, neighbors and competitors are doing? Maybe. Start with having a major desire, learned skills, and willingness to work hard.

We all fail. The question is, “What are you willing to do to reinvent yourself and bounce back?” You never, ever give up. There are plenty of examples to inspire you if you look. My father, mother and countless other small business owners, freelancers, business leaders and entrepreneurs inspire me daily.

It’s time, now, to be ready for what’s coming. Cash flow is the key. Be like Wayne Gretzky and know where the puck is going. Upgrade your financial knowledge and get help from people around you, smarter people, even if it means you pay them to teach, consult and advise you. Who knows what this could mean for you and your family?

Staying in the game is simple, not easy. Know how to create cash flow. Be set for life.