Four Edicts for Successful Implementation of Cash Management Advisory and Financial Modeling services.

1. It is not for lack of software that businesses continue to fail at an alarming rate and will continue to fail far into the future.

I have been successfully working with businesses as a software consultant for over 12 years, and I am a little appalled at the mindset of the current industry "experts." "What's your App Stack"? Come to my Webinar to see my top five favourite apps, yadda yadda. All these Facebook financial gurus telling you that you need to use this app or that app. Many of them parroting some crap a software company told them in the hopes of an invite to show up at some event and get a free meal and some attention—smoke and mirrors, with little substance.

Here is what you really need to understand. The definition of a business is a series of systems and processes that produce predictable results. People need to focus on understanding what proven financial processes get the positive predictable results; they are after and implement these activities. Then and only then, take these working processes and automate them with some software. Without this order of understanding, You'll continue to chase after apps and be tunning into your 8th software Demo feeling no further ahead than when you started. If you are a business owner, start looking for financial professionals who can articulate and implement great financial systems that provide you with the data required for a timely, accurate and informed decision. After all, when your car breaks down do you call a wrench or a mechanic? Need a referral to a great Financial mechanic? Check out a list of vetted professionals here: https://dryrun.com/featured-partners/

2. If you're a financial professional who truly desires to start offering Cash Management Advisory and financial modelling services because that is what the industry says you should be doing, be prepared to realize your current clients may not be a fit to join you on this journey and this is OK.

I have had too many conversations that started, "Jeremy, I have a couple of clients that if only I could get them successfully started, I might be able to make a go of offering this service." My question to these prospective Financial Advisors is, what if the client doesn't want to pay you to do this work? What will you do? The reality is I have met thousands of professionals who took this approach, got rejected and then quit before really getting started. It is sad and avoidable.

I have written and spoke about this approach several times, and I have compared it to building a Department store for two people. It is never going to work. The quantity doesn't fuel the probability nor gives a chance to possibility. Once again, business is a series of systems and processes that produce predictable results. The correct mindset is to build a department that communicates regularly (Marketing) to thousands, so the probability of your valuable services to a specific audience may produce hundreds of great conversations, so you can with certainty cherry-pick the best 10,20,30, etc. clients you want to manage and work with.

If you want to build a new service (Department) give it the time and resources it deserves. Your future clients demand it.

3. Cash Management and Financial Modeling is the process of helping a client understand how long they can survive (Runway/Burn Rate), then advising them what activities they need to implement/Habituate to continue the business survival. The gift we give our clients as professionals is the gift of time. These activities are future states. Often best described as driving down the highway gazing forward through the windshield. In contrast, accounting and bookkeeping record what has happened in the past, staring at the rearview mirror.

Here is the truth, you can't look forward until you know where you are today. If your client's books are not in the cloud and updated at least every week, you will never have success with cash Management Advisory as a service. Step#1, great books, then everything else. Annual clean-up, Quarterly, monthly, desktop, doesn't make the grade. Trying to skip this reality will have you falling on your face.

4. Cash Management Advisory and financial modelling are not complex, so don't bring the same level of bullshit to the subject like they do in the tax industry.

In short, business owners truly value those who can simplify their lives. The tax industry complicates compliance to create frustration and confusion so the existence of service is justified.

Know this, Cash Management Advisory and Financial Modelling can be simple, systematic, and the scope of offering can be 50 hours per client per year. Yes, an average of an hour per week can save many multi-million dollar businesses from financial ruin. Take some time to learn the concepts and put them into practice and keep it simple.

Conclusion,

Cash Management and Financial Modeling are in their infancy. Over the last 5 years, I have dedicated my professional life to speaking with financial professionals on the subject. I would say less than 3% of the financial professionals I have spoken to have ever been paid for helping their clients with these services. Less than 1% of them would get a grade of excellent from me on their systems and processes.

With the right mindset and a proper set of expectations, I do believe that anyone can learn these systems and processes and build an exceptional practice. In fact, I hope Cash Management and Financial Modeling are seen in the future as the next logical evolution of good bookkeeping and fundamental business practice.

If you enjoyed this post, Awesome. Please leave a comment on what you liked.

If you decided to take offence to my perspective. Ask yourself what made you feel so uncomfortable and why you feel this way. Who hurt you? It's most likely just a knee-jerk reaction to your desire to cling to an illusion of comfort that is not real.

If you would like to positively impact the world, learn a systematic way to offer these services to a group of 900K Multi-million dollar business owners in the US who are praying for help on this topic, send me a connection invite and book a 20-minute intro call with me here: https://calendly.com/jerburke/jd

It's been a pleasure