I don’t care how much my business is worth.
In my mind, it’s “worthless” until the day we sell.
My focus is on monthly cash flow.
Cash flow is what I use to pay my mortgage, provide for my family, go on vacation, and live life on my terms.
It’s what I use to invest in expanding our footprint and pile into index funds.
Some people chase after zero-cash-flow, high-equity plays.
Software that could go to the moon. The next Bitcoin project.
Those businesses generate zero cash flow, hoping to strike it big down the line.
Most of them fail. A few hit it big, making it all worth it.
It’s playing the lottery.
But me?
I’m grinding away, stacking cash every month.
One franchise at a time.
Consistent cash flow gives you options.
It gives you freedom.
Cash flow allows you to take risks because you have a solid foundation.
Equity locks up your wealth until some theoretical future date.
Here’s how I structure it:
I take conservative, recurring distributions based on what I know the business can afford.
Excess profit gets moved into a business “profit account”.
Every few weeks I take a “profit bonus” on top of the normal distribution.
Eventually, once I know the business can consistently support it, I’ll increase the recurring distribution.
This strikes a good balance between ensuring the business has sufficient cash to reinvest in growth and rewarding myself.
Most entrepreneurs get this backwards.
They either take nothing out, living like broke college students while building “equity” that is never realized until they sell.
Or they take everything out, leaving the business cash-starved and vulnerable.
I take what I’ve earned while keeping the business strong.
By the time other entrepreneurs get their “life-changing” exit, I’ve already been living my dream life while building something sustainable.
Cheers!
Brian
P.S.
Prioritizing cash flow over equity is principle #2 of the 8-Figure Franchisee Code.
I’m building the #1 franchisee community in the country. It’s exclusively for franchisees who are driven to build a massive business.
