178. Financial Chute First. Then Jump
70% of businesses fail in year one. Why ? Because there wasn't enough cash in the bank to keep the lights on. Great ideas don't keep a business alive. Cash flow does. This episode is about the one step most consultants skip, and the reason so many of them don't make it past year three. Note: This is step five, the final episode in my five-part series on how to make money as a wellness consultant. If you haven't listened to Step 1 (One Way Forward), Step 2 (One Thing, Done Brilliantly), Step 3 (Become Your Client's Obvious Choice), or Step 4 (Overdeliver Consistently), start there. This episode is what makes everything you've built in those four steps actually last. Now, back to the episode. I started Spa Balance in December 2007, using my savings as startup capital. I had clients. I was working hard. They were repeating with me. On paper, it looked like it was working. Then in 2008, Spain slid into an economic crisis that hit rock bottom by 2012. I still had clients, but they'd stopped paying on time, or stopped paying at all. So my P&L looked healthy. Every invoice I issued sat there as revenue. But there was no cash in my account, because revenue on paper and cash in the bank are not the same thing. Hence, I had to crawl back into full-time employment just to stay afloat, all while still running my business, still writing my first ebook. That experience taught me two things I've never forgotten: first, the moment a client defaults with their payments to pause works, and second, I was never again going to ask my business to pay for my lifestyle, or to pay to keep its own lights on, before it was strong enough to do so. Even after I'd published a bestselling book, I made the strategic choice to go back into full-time employment again. My business was doing well, but I'd learned my lesson about buffers. And when the pandemic wiped my reserves clean anyway, I built them back up the same way: strategically, deliberately, with my lifestyle funded separately from my business. Phil Knight ran Nike for ten years while working full-time as an accountant. If the founder of Nike needed a safety net for a decade, none of us are exempt from needing one either. In today’s episode, here are the 3 things you’ll learn: 1.- Why revenue and cash flow are not the same thing — and how a healthy-looking P&L can still leave you unable to pay your bills. 2.- How to calculate your essential living number — the minimum you need to cover your household expenses, so your business is never on the hook to feed you before it's ready to. 3.- Why this step comes last, not first — and how the emotional cycle of change explains why so many consultants skip it, right when they need it most. By the end of this episode, you'll understand why cash flow, not ideas, is what determines whether your consulting business survives past year one. You'll know how to build a safety net that funds your lifestyle separately from your business — a low-effort side income or strategic employment — so you're never forced to ask your business for money it doesn't have yet. And you'll see the full five-step arc, start to finish: direction, offer, sales, delivery, and now, the safety net that lets all four of the others actually hold.

