The two major causes of stress for business owners are people and money. In fact, it might be fair to say that about life too ????
And it’s the latter that we are going to focus on in this issue. More specifically, we are going to look at a certain action that can alleviate 93% of the stress around money (yes, I made that up – but the point is, the positive impact is huge).
In many cases, the stress comes from a feeling of uncertainty. A fear and and thought process based on ‘what if?’ or ‘will I run out?’.
While there are many tactics and strategies to improve profitability and cash flow, this issue is all about the fundamental habit of forecasting. Now, that word may make your skin crawl or just cause your brain to disengage so what if I put it like this:
How would you feel if you knew that you had enough cash for the foreseeable future and you didn’t need to worry about cash flow. Instead you can put all your energy into growing your business and looking for opportunities? If the thought of being in that situation is attractive to you, then read on and get excited about cash flow forecasting.
Of course, cash flow forecasting is not just about stress reduction. It’s a critical tool and habit for managing the growth needs of your company. After all, a company without cash is not a very good company
Your Sleep At Night Tool
I call a cash flow forecast the ‘Sleep at Night Tool’ for obvious reasons. If your cash flow is giving you sleepless nights, then check out this video that explains exactly how to do a forecast. If you’d like a copy of the template, email me: [email protected]
Warning: this video is not a Hollywood thriller, but the outcome it can generate for you will make it a worthwhile investment of your time.
7 Tips to Getting Started with Cash Flow Forecasting
This short article gives some great insights and considerations for your forecast. There is also a template for download in case you don’t like ours
Three Tips to Improve Your Forecast
Developing the skills to build an accurate cash flow forecast can take some time to master. This article shares three specific considerations to boost the realness of your forecast.
A seasoned CFO’s Take On Cash Flow Forecasting
Thomas Taylor from T2Consult acts as a virtual CFO to growth companies. His common sense approach is one I advocate. He has some great articles on his blog, of which this one on cash flow forecasting is a worthy read.