I’m a big fan of making plans. And since we’re approaching the end of the quarter it’s a great time for looking at what has happened in your business this quarter and re-evaluating your goals for the next 3 to 6 months. But planning will only take you so far. To turn plans into reality you have to take action. Step by step, one piece at a time, you can build the business of your dreams.
Read MoreMeaningful numbers are a central theme at CFO on Speed Dial.
That’s because having and using meaningful numbers is the foundation for our entire framework for building business and financial success. If your financial reports are not meaningful; then they can’t do the job you need them to do — which is to make informed decisions about how to keep your company moving ahead strategically.
Using loan funding (like the EIDL or other SBA small business loans) can be fantastic way to fuel a growing company, but how much business debt is too much? Here are two ways to check if your business borrowing is helping or hurting.
Read MoreSmall companies often get by without solid financial management or performance systems in place. But the cost is slow growth and high stress. Meet 7 types of business owners and see how business growth soars when you have systems to manage finances, make decisions and take consistent action based on strategy.
Read MoreThree systems.
That’s all you need to manage finances and propel your business growth...that sounds simple enough, right?
In theory, yes. However, one thing I’ve learned during my years as a CFO for growing companies is that numbers and financial decisions can feel incredibly stressful and complicated.
Read MoreCash management is the #1 skill that can make or break a business. But If you’re still wondering why cash flow is so important; or how cash flow problems actually affect companies read these two case studies; and learn my Four Core steps to control cash, even when business dries up due to Covid-19 shutdown.
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 MoreBusiness 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 MoreYour 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
