When 6- and 7-figure entrepreneurs want to get to the next level in their businesses, I’m the CFO they call. I help them get there by focusing on cash flow. By that I mean providing clear visibility into their bank balances over the coming weeks and months that they can make intelligent decisions right now.
The biggest thing entrepreneurs face is understanding and knowing where their cash is coming from, where it’s going, and even more importantly – when it’s coming and going.
What’s my bank balance going to be next week? At the end of the month? At the end of the year? We need to know that in order to make business decisions from a position of strength rather than one of fear.
Today I want to share something I learned while I was CFO in a multi-billion-dollar company. And it’s a “something” that applies as meaningfully to start-up companies as to Fortune 500 companies.
It is a simple, easy to maintain, and incredibly informative cash flow forecast.
And, yes, I’ve used this exact same format in a billion-dollar company, and in a pre-funding start-up (translated, that is a $0 revenue) company.
It really is easy to manage, and the results of putting it in place, can transform feelings of overwork and anxiety over “the other shoe dropping”, into a calm, relaxed understanding of what your bank balance is going to be next week, next month, and even 6 months from now.