/ Is your cash flow inadequate?

Knowledge Base Article
Article Type: Blog
Author: Bibi M

Is your cash flow inadequate?

cash flow

A common problem growing businesses face is that they need cash. Revenues are growing, profits are growing but cash feels really tight. In this blog we are going to show you how to improve your cash flow position and double your cash flow.

The most obvious way to address this is to leave it to your Accountant or your CFO. They are the “numbers people” and you pay them to give you the right advise. But do they really help you to be in the desired position  – cash abundance? You still find yourself worrying about cash. You still need to find the money to come from somewhere, so you can pay your staff, your suppliers, etc.

The reason why you still feel cash is short is because it is not your Accountant’s or your CFO job to find the solution for you. You are in charge of your business, so they do whatever you tell them to do. We found out that 60% of businesses have inadequate cash flow. If this approach was working, than why on earth would this percentage be so high?

The risk you are facing by leaving this problem to your Accountant is that you will never learn how your decisions affect your cash flow until you truly understand your cash flow. Every time you make a change in the way you run your business, it affects your cash.

And the problem does not end there. Cash flow issues grow exponentially as you scale up your business. So you might be growing broke and not even know it!

So then what is the right approach to take and why?

> Get your Cash flow Performance Tool now! <

In the next few paragraphs we will give you a 5-step process for you to use to improve your cash flow position. We are giving you the tools that banks and investors use to assess your creditworthiness. Mastering these tools will help you uncover blind spots in your business and better your cash flow performance. We have done this with a number of CEOs already and we know that it really works! We have now decided to put these tools in your hands so you can start improving your cash flow. We believe in self-financed growth and everything we do is geared towards enabling you to achieve that – total financial independence.

We guarantee that if you follow this process, in a year from now, you will be way further ahead with your cash flow. You can start sleeping better at night.

#1 Find out your true cash flow position

The first step is for you to work out if your cash flow is inadequate. You can use these Cash flow Performance tool  or you can do the calculations yourself. The idea is that you need to put measurement system in place for what you want to grow and then keep measuring until you have reached the desired position. The benefit of using the Cash flow Performance Tool is that they have pre-coded algorithms, so you can work out your cash flow position in just minutes. Just input your numbers and you will be able to see the results.

#2 ‘Read’ the results

The second step is for you to be able to understand and interpret the results you get from the calculations. After all, you need to know what these numbers mean to your business. We have created this for you also, so if you want to save time feel free to download the tool here.

#3 Start closing the gap

The third step is all about taking the right actions to improve your cash flow position, it is about closing the gap. Now 2 things begin to happen here, one is that you let the world and everyone around you know that this is what you want to do and second is that you start to change your habits towards improving your cash flow position. This means that you are going to pay attention to your cash flow. For a shortcut, you can access our free guide on this in the Cash flow Performance tool or speak with us any time you wish to.

> Get your Cash flow Performance Tool now! <

#4 Discover who else can help

The fourth step is about getting your team up to speed with this process. They might want the same thing as you do and more importantly they might have the answers you are seeking. Go ahead, share what you’ve learned with others. You can also attend our Cash Flow Improvement events

#5 Learn more about what you want to grow

The fifth step is about measuring again to check your progress. Keep using the Cash flow Performance tool until you have reached the desired cash flow position. Learn more about this, spend some time, every week on improving your cash flow topic. This might mean that you will have to invest in a course, or coaching, or training, or books.

That’s about it! Go ahead, try it! It works every time…Why? Because it enriches your knowledge and awareness of cash flow in your business. After all, if you do not know where you are, how can you get where you want to be?

If you want to learn how to measure your cash flow and improve your cash flow position, then make sure to download Cash flow Performance Measures, online training for CEOs of growing companies.

What are you currently working on or measuring in your business and life? We are eager to hear from you!

> Get your Cash flow Performance Tool now! <

 

RELATED LINKS

Read more about BMIM Cash flow

How we measure the success of your Strategy (WITH FREE TOOL)

How to fix your Working Capital problem…even if you are not “numbers person”?

Understanding your profitability picture (with FREE worksheet)

Cash or Profit?

Turnover is vanity, Profit is sanity – but Cash flow is reality!

Solving Cash flow Concerns

How to generate cash to self-finance your business?

Life-Cycle Financing of your Entrepreneurial Company

Early stage business financing: The pros and cons of taking money from Business Angels

Case Study: Growing broke with inadequate cash flow

Case Study: Financial turnaround and re-invention

Case Study: Restructuring for Survival and Financial Turnaround

Case Study: Subscription Finance: Accelerating business growth by building and maintaining long-term customer relationships

 

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