Alright, so your business is making money … but are you keeping it?
To ensure your business is actually adding to your wealth rather than draining a bank account, you need a cash map.
The official term for that cash map is a cash flow forecast, a tool that helps make sure that the money coming into your bank is consistently higher than the money leaving your bank account.
Not just at the end of a year, but week to week or month to month.
And since we’re just talking about your checking and savings accounts, it’s a straight-forward tool to use.
And it shines an amazingly bright spotlight on any opportunities or pitfalls that may lie ahead of you, in time for you to prepare for them!
- Knowing 12 weeks ahead of time when you’ll need to borrow cash or make more use of your credit card!
- Being comfortable that you can finally hire that operations person you need, or start that ad campaign that you know will drive sales
- Taking a vacation and not worrying if your cash will run dry
- Finally seeing how your profit affects your bank balance and having it make sense
In short, with this tool you keep your business cash-cushion plump and ready for a rainy day—or a sunny investment opportunity.
No business owner should be trying to fly their plane without it.
Dodging the Bullets of Business
Remember Chutes and Ladders?
Wouldn’t it have been cool to be able to steer yourself to the bottom of those ladders and away from the tops of those slides?!
Now this isn’t a passive endeavor – no way.
This is a tool that is alive and allows you to shift and pivot in your business with complete confidence.
Sticking with the airplane metaphor, if the weather’s rough near the airport you wanted to land, you have the information you need to shift to a neighboring airfield.
If you hear about an awesome sale on airline fuel, you can include that stop on your next flight plan.
Because forecasting isn’t just about numbers; it’s a strategic necessity for keeping your plane in the air and making the most of your journey.
By knowing ahead of time what your cash requirements and excesses will be on a weekly or monthly basis, you can proactively adjust any of your company’s business levers to dodge the bullets and take advantage of the opportunities.