Doing what you love to do does not necessarily mean that there will be cash rewards. A person may like to volunteer at a local charity, so much so, that the majority of daily effort, both in work and in “mind” is used up on this project. If you are retired and have unlimited resources for your current and future living needs, then go ahead and enjoy your volunteer efforts.
I was invited by a new acquaintance to attend a networking session. During the course of the meeting he shared that he spends 4 to 6 hours a day networking. He admitted that he was a “networking junkie”, (first time I ever heard that term) even though his business has not benefitted from this effort, he keeps right on doing the same thing.
The same thing can happen with a civic organization or a trade association; they may be fun and challenging and give you a personal feeling of satisfaction, of giving back to your industry or community. The same rule applies, if you are wealthy give of your time. If you are trying to grow a business and these involvements aren’t paying income dividends, it’s time to re-evaluate your use of time.
Doing what you “love” to do is often touted as the business you should be in. Unfortunately, that seldom holds true when cash flow is an issue. Business love is something that can be developed. Find something that can make you money and then fall in love with that business.
I don’t want to totally eliminate the possibility of earning a living doing something you love. In the case of my new acquaintance, I suggested that he start his own, for profit, networking group. With all his experience in this field he could pick the best from each group and create a very profitable business for himself.
For many small businesses, cash flow is the main problem. In working with this very typical situation, my answer is to review everything that the business or individual can do and then select one and monetize it. That may require a specific plan made up of measurable action steps as well as establishing an effective time management system.
Creating short term cash flow is possible, but it requires dedication on the part of the business owner as well as the mentor who is providing the guidance. I prefer not to be called when cash flow is at a critical juncture, like paying the rent tomorrow, but with a little time and effort monetizing can be achieved.
Attitude and commitment are the two most important ingredients needed for reaching any goal.
Nick J. Petra CFP