Cash drives your business. So what’s the best way to manage it? Visionaries have different ways of managing cash.  Each type has its challenges of how to maintain futuristic excitement while looking at the stone cold face of reality.

The Pincher. These savvies are frugal and lean heavy on their budgeting process. They have a “lack” mentality which drives their decision-making.  They craftily proceed with their vision by sparingly using cash so it’s rarely a problem. They centralize control so that spending doesn’t land in the hands of a rampant spender. Challenges: this person makes all spending decisions—no delegating allowed which is a trouble in any enterprise. Their staff often is left wondering and is not empowered to help them with their workload.

The Roller Coaster. These folks spend and lack in a cycle. They spend on momentary demands until it’s gone. When the wallet is empty, they catch up on payments and personify The Pincher. When more money rolls in, the cycle starts over. They seem to always land on their feet. Challenges: This person spends most of their spare money and energy fixing the missteps of their cycle so their vision for the future gets little attention. Their staff has a lot of fear about their job since decisions appear to be based on what’s in the bank today rather than where the company is headed tomorrow.

The Abundant. These business owners have great visions of the future, are extreme creatives, and their money feels endless. They pay their bills on time and make deposits regularly, but do not budget. Their focus is to spend rather than earn. Challenge: The revenue side of their business has no steam – it’s just idling. When their cash runs out, so will their enterprise. Since their revenue muscle is atrophied, they have no way to earn more. They may be forced to throw it all away – all that they’ve spent on building will be tossed out rather than used as an asset.

The Equalizer. These are those drenched in the love of what’s here, now and real. They pay their bills on time, make deposits like clockwork, and know what next month looks like. Challenge: It sounds optimal, and it almost is. If they keep to their methods alone, their company won’t grow which means their company begins to die. Strong Equalizers surround themselves with staff visionaries and creative minds to push them beyond their comfortable here and now.

Balancing reality by knowing where your cash is and envisioning the future is a skill to learn. If you know yourself to have challenges with cash management, keep in mind that a strong cash manager uses a solid system that works for their thinking style, they practice their cash managing skill daily or weekly, and they maintain support from trusted advisers to get them through the rough patches.

What kind of cash manager are you? Share your story with us.