Is your cashflow inadequate?
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 cashflow position and double your cashflow.
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 cashflow. 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 cashflow until you truly understand your cashflow. Every time you make a change in the way you run your business, it affects your cash.
And the problem does not end there. Cashflow 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?
In the next few paragraphs we will give you a 5-step process for you to use to improve your cashflow 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 cashflow 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 cashflow. 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 cashflow. You can start sleeping better at night.
#1 Find out your true cashflow position
The first step is for you to work out if your cashflow is inadequate. You can use these worksheets and online training 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 Cashflow Performance Worksheets is that they have pre-coded algorithms, so you can work out your cashflow 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 online training here.
#3 Start closing the gap
The third step is all about taking the right actions to improve your cashflow 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 cashflow position. This means that you are going to pay attention to your cashflow. For a shortcut, you can access our free guide on this in the Cashflow Performance online training or speak with us any time you wish to.
#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.
#5 Learn more about what you want to grow
The fifth step is about measuring again to check your progress. Keep using the Cashflow Performance Worksheets until you have reached the desired cashflow position. Learn more about this, spend some time, every week on improving your cashflow 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 cashflow 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 cashflow and improve your cashflow position, then make sure to download Cashflow 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!