Rhino University EP 8: Free up Cash in a Crisis

Cash, Covid-19, Crisis Management, Dr. FJ, profit, Rhino University, Video -

Rhino University EP 8: Free up Cash in a Crisis


Hey Rhinos, Dr. FJ

We got a lot of craziness going on right now so I want to talk about Freeing up Cash in a Crisis.

At the time of this video the Corona Virus is going on, but this is applicable to any kind of adversity you face, like a recession or housing marketing crisis, or if Insurance Comp stops payment. This is applicable for many years to come. The number one priority is to keep your business going, to turn a profit so you can take care of your family and your team.

To do that you got to look at cutting luxuries and variable costs

In your business you have variable and fixed costs, or your overhead.

The fixed costs would be Rent, phone, power, internet that need to be paid no matter what. There are some fixed costs that you might contracted to, but others, maybe not.

With Corona going on my newspaper ads that typically hit, after a few weeks stopped hitting so I postponed it. I’ll do it again but for now I’ve delayed it saving myself a little bit of cash each month.

You have to know what your luxury fixed costs are and what the variable costs are.

Some examples of luxury costs and reduce or cut what’s not necessary

Cleaners - If we’re super slow, we can clean the office and our house

I cut out my Personal Trainer, temporarily on hold. We’ve cut Eating Out and only do so to support our local community businesses get through this as well. We obviously won’t go clothes shopping right now either, landscaping, snow removal. These are some luxuries that we don’t need and can put them on hold. Look at what your variable costs are that you can put on hold. Even supplements, we are only keeping our stock of the supplements that are selling. Chlorella, garlic, goldenseal, vitamin C, those are all selling so we’re still spending money on those but cutting out ordering the less common supplements.

For office inventory, we’re only ordering what’s really absolutely necessary, but we’re also looking at what we’re low on and selling.

Like I talked about in my last video on Profit Forecasting, the biggest mistake you can make is being overly optimistic. You got to assume this is going to go on for a long time and you got to look at your overhead, your office performance and see where you can free up cash so you can continue taking care of your family, taking care of your team and the office will continue running at a profit.

Another strategy you can do is delay payments.

Typically when we get an invoice to the office we pay it right away, but usually there’s a 30 day span, so now we’re sending it at day 29. This gives our office 29 days to allow the office to operate and bring cash in so we can hopefully keep the cash flow good. Just a simple little thing you can do, you’re still taking care of it but a bit more strategically. Also Credit Card, if you have a big CC bill. Maybe you bought a table right before this all happened, so now, only pay the minimum if you don’t have the cash flow. Get charged interest a little bit but it’ll keep the cash in the practice while this is all happening. There is no reason to pay off the entire credit card bill and then have no cash to operate in your business account, that makes zero sense - now you can’t pay the rent. So just pay the minimum at this time and then in 3or 4 months, when you’re getting your “normal” PV flow pay it off. Just delaying and paying the minimum can make a big difference in office cash flow

  1. Delay new capabilities and growth

Maybe you were thinking about buying a new table, or expanding your practice, or new technology. Unless you have the cash - If you profit forecast and you see that even if this goes on for 6 months you’ll still have plenty of cash and your operating way above a profit then go ahead and do this, this is only if you do the profit forecast and you see “ah in 3 or 4 months, things are going to get tight and we’re not going to be able to turn a profit” okay then, we’re going to take this step.

If you forecast for 6-12 months under worst case scenario and you see that you’re going to be good, then Boom go ahead and do this. This is where the super wealthy millionaires and billionaires, this is when they buy fast when no one else is cause they have the cash. That’s why we talk about saving and now might be a great time, if you have the cash, for investing because the market is so low. Buy low and sell high – these are the times to do that. BUT you gotta have the cash, so you have to plan for the worst and profit forecast so you know in 7 or 8 months that you’re going to be ok.  

If you do your forecast and things aren’t going well then you have to delay growth, maybe even delay raises.

A good friend of mine works for a massive billion dollar company that usually get a raise every year, this year, they’re not, they’ve put a hold on raises this year.

So you may need to delay bonuses or anything like that, because you need to make sure you can take care of your team, your family, at that the office runs at a profit.

These are 3 of the 5 steps I teach for freeing up cash in a crisis. We did a digital training on this topic a little while back to help people.

During this time Connect with your Rhino Family. Touch base with people once a week, once every couple weeks because connecting, knowing you’re not alone, having another person there with you and you can keep them in check, they can keep you in check. It’s very easy to get negative, but it doesn’t do any good.  Very easy to complain, but it’s not productive, it’s not accomplishing anything, it’s not producing anything so it’s a total waste of time and energy.

Remember, after the crisis there is always a BOOM. After the droughts come the rain, after the winter summer is coming. This is what you signed up for when you wanted to be a business owner, this is why we train - To be Smart, to be Strategic and ready for these moments so we can get through and thrive. When you can handle these moments and handle them comfortably, you’re going to kill it.


Alright, so these are 3 of the 5 steps to just strategically keep that cash flow freed up so you can continue taking care of your family and your team. Hopefully you’ve saved some cash, hopefully you haven’t been careless to buy 3 or 4 boats and a couple houses and cars you don’t need that are all leased with all these massive payments. This is why we teach you to save the cash, but if you haven’t these are the steps to take to make sure you can get through the next few months and then things will boom. This will end, it will all be fine but you have to plan for the worst and prepare for everything.


So really consider these steps!

We want you to thrive, we need more successful chiropractors, and together we can change this profession for the better and forever but we need to have a lot of super successful chiropractors to do that.

Keep Charging!

-Dr. FJ Schofield

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