Let's talk about Cash-Flow...

One of the very first areas I focus on when working with clients is CASH-FLOW...

It's one of the most important areas in every business, unfortunately not everyone gives it the time and attention it both needs and deserves.

Understanding your numbers will lead to you making much better, more informed business decisions.

Business Owners often take cash for granted, especially when there is plenty coming in.

Sales are good... we can spend where we want. Wrong!

Cash is a precious resource for any business. Having more money than days in the month is very unusual unless you have a cash-rich business.

There are 3 main areas that can lead to understanding where your money is going and how to manage it better….

??A Cashflow Forecast

??Your Breakeven

??Your Cash Gap

Each of these is relatively easy to calculate and can save you the pain of discovering that you need more money than you have available.

Knowing what is expected based on either committed funds or by trend analysis of previous months enables us to be proactive about what is happening.

That knowledge can be the relief you need to stay upbeat and confident about being in business.

If you don’t know how much revenue is expected in the next 90 days right now, then you need to work through these tools to understand your numbers. You might be surprised by the difference it makes to your confidence.

Ask your bank manager if you go to them wanting additional short-term funds are they more likely to say YES if you can share your CASH-FLOW forecast with them I promise they will

Some years ago I was working with a nursery school for whom cash-flow was a real challenge, they had lots of children whose parents were eligible for government support fees while the money was guaranteed it was at a lower rate and they had to wait for the payments neither of which were great for cash-flow. The bank was talking about foreclosing on the loan she had for the nursery's premises end of the business. We put together a cash-flow forecast for the next 12 months and as a result, the bank stuck with her. Result for her, the children in her care, and the parents who relied on quality child care so they could work and for the economy. Win/Win

If CASH-FLOW forecasting is something you want to implement in your business let me know I have tools, templates, and even a video that will help you create CASH-FLOW forecasting in your business.