Cash Flow : Cost Flow

A basic principle of economic philosophy is money needs to move. When there are slow downs, cash accumulation, or bottlenecks to the economic flow of a business, frustrations can arise. Think of the act of inflation as opening the dam to try to push the flow through again by force. Not always the best approach, as there can be side effects and damages. 

There are many money metaphors I could expand on here to make a point, but I will focus on Life-Cycle Costing and how that cycle models the life-cycle of a river through the seasons. In the Pacific Northwest, various species of Salmon will make their way up and down stream of rivers to and from the Pacific Ocean to spawn in the more habitable waters inland. Each species has their turn throughout Spring and Fall, depending on the level of water flow they prefer in the rivers during the ebb and flow of the season. 

Throughout the life-cycle of one fish they can travel thousands of miles and move through salt, brackish, and fresh waters. 

Cash flow through the phases of Life-Cycle Costing throughout a business can model this process we see in nature. In fact, I believe there is a genius in doing so. Life-Cycle Costing is a process that accounts for "upstream costs" and "downstream costs" and provides guidance in navigating the journey successfully. A well attuned business owner can grasp a broader perspective of their business, look upstream and downstream, read the waters, and plot their course. Understanding the seasonality of the industry of choice, the environment that industry thrives in, and moving with agility will provide conditions that will better ensure the survival of the offspring of it.