How to manage the Boom or Bust energy drain

You’re riding high. Business is booming. You’re feeling abundant and grateful.

And then…

There’s a lull. Bookings are down. Where did your clients go? You’re stressed and scrambling to do some marketing and get the finances flowing again.

Up and down and all around. How can you get off this financial roller coaster?

You may not be able to change how and when clients use your services or buy your goods, but you can look for trends and plan for them. If you have been in business for a while, you likely have an intuitive understanding of when your down times are. If you’re new to business, talk to peers who have been practicing for a while and get their feedback.

The numbers, however, will always tell you the real story and confirm (or perhaps challenge) your intuition.

The Profit & Loss statement (also called a P&L or Income Statement) can be a powerful tool. If you aren’t using a bookkeeping software, your payment processor will have income reporting that you can use. Let’s look at those numbers month over month for 12 months. What are the numbers telling you? Are they consistent month to month? Are there booming months? Bust months? Why is that? Can you see a pattern and understand what is happening and when?

We also need to look beyond the income to the expenses because there are times when annual expenses are due - insurance, licensing, dues, taxes, etc - which can make even a boom month feel like a bust if we don’t intentionally plan for it.

Capture Profits walks you through the process of analysing your numbers to determine a percentage for: your compensation, taxes, operating expenses, and, of course, profits. By utilizing separate bank accounts for each specific purpose and setting aside the predetermined percentage on a set schedule, you ensure that the money is there when you need it.

It is a holistic, proactive approach to your financial wellness. It eases the burden and stress of downtimes because you have set aside additional funds when things are booming. And by anticipating downturns, you can use these to your advantage. Maybe schedule time off for yourself or consider another offering during these times.

Just like our movement practices, nutrition, and supplement intake, consistency is key. Setting up the system takes some effort but once established and consistently applied, you will reap the rewards.

You will weave your financial wellness practice into your life which eases the burden of boom-or- bust cycles. You will no longer oscillate between abundance and scarcity but remain stable in knowing you’re covered. The stress of financial management is eased and you can focus your energy on serving.