Knowing this WILL make you sleep better at night!
Ever wondered why you were generating great profits but had no cash to draw at the end of the month?
Where has that cash gone?
It still surprises me that so many business owners have no idea what their Operating Cashflow was last month.
Or any month.
Whilst you may not be able to control the Revenues into your business, you can influence the Costsgoing out…
And this is why you should:
- Understand your Operating Cashflow, and
- Create a rolling 13-week Operating Cashflow Forecast, so you can get a map of where your money goes.
Having a Scorecard of numbers is one thing, but if you don’t know what they mean then what’s the point?
A properly scoped Cashflow Forecast will show you the various points of your cashflow, as well as the lowest dip. This will help you measure and change your activities accordingly.
And help you get into the rhythm and routine of Eat, Sleep, Scale, Repeat.
Without this, you’ll never be fully in control, and all decisions you make will be guesswork at best.
If you need any help understanding this, or how to connect the dots in your business, you know where we are.
Investor | Business Mentor at Advocate | Author of I don’t work Fridays