The Barefoot Investor has it right!

Scott Pape, the Barefoot Investor, is one of my favourite humans. He has come up with a simple way to teach great financial management to thousands of Australians and in doing so changed lives. 

I think there are a lot of lessons in his personal financial game plan for entrepreneurial businesses. The key to a sustainable business is a great product, strong revenues, and sustainable profits. It’s not what you make it is what you keep which drives sustainable businesses. Working capital and the availability of money is critical. 

As a starting point, Scott teaches about managing debt as well as having a little in reserve (Mojo) for that rainy day. Clearly, this applies to business as well. Funding growth using other people’s money (debt) is common practice. Good debt can be a wonderful tool to drive business growth and fund opportunities. The issue occurs when those debt levels get out of whack and impact cash flow or the market shifts, and the unexpected happens. 

At the moment, so many businesses are challenged with cash flow amidst a horrendous global pandemic and the impact of lockdowns. The Barefoot lessons have never seemed more relevant to both individuals and entrepreneurial businesses. Is your business carrying too much debt? Perhaps you can apply the barefoot principles and get your business fit and lean for the road ahead.