Too often, business owners become the victim of poor cash planning or “swiss cheese” style of cash management -- letting cash leak out of the business simply by not paying enough attention to expenses. In fact, 82% of businesses fail because of cash flow problems (according to a US Bank study,).
Being proactive and strategic in managing cash is critical to your business success. And the best way to do that is to start by crafting a detailed cash flow plan.
Read More
Business financial plans usually start with recent history and use a trend line to predict the future. For most companies, it's impossible to use 2020 revenue to predict reasonable sales or revenue growth for 2021. Still, when life and business are full of uncertainty; having a map of where you want to go and how you plan to get there is a critical tool.
So yes, in 2021, you can and should create a 12-month forecast to plot out a full year of what you think can or will happen. But, don’t treat it like a fixed business budget and try to make it 100% correct.
Instead, acknowledge something that has always been true:
Today’s forecast can’t fully predict next month’s challenges.
Read More
Your quarterly review shouldn’t be a huge, burdensome process. In fact, the review process should be simple and energizing for everyone involved. It’s an opportunity to reconnect your team to your shared purpose, and make sure everyone is clear on the goals you are pursuing as a company.
Read More
When cash is tight, seeing profit on your P&L does not feel like the truth you are living — because profit is not cash. There are dozens of places where your Balance Sheet is connected to your P&L. This post covers the top five.
Read More