How much would you pay for a crystal ball that could predict your businesses profit in the future?
Today we are talking cash flow forecasting or a crystal ball to predict your finances and before you shut me down which I know you want to because cash flow is boring as s*** for most people stick with me!
Over 90% of small business owners blame lack of cash flow for their business failure – well it is kind of hard of know when your cash flow is going to run tight if you don’t have some sort of report to show you what is going on.
That magical report or a cash flow forecast is not half as complex as you might think it is. Many accounting programs even have one built in – too easy! Its as simple as looking at what has happened in the past and combining that with what you think will happen in the future – and viola – a cash flow forecast is birthed in to your business.
If you are constantly stressed about money in your business, if you are desperate to take a holiday but not sure when you can because you don’t know if you have the cash flow, if you want to put a staff member on or outsource but are worried about how that will affect profit then you need a cash flow forecast. Don’t think just because you are a small business you don’t need one of these – every business should have one – it will take a lot of guess work and stress out of your day!