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"Traditional accounting does not track cash very well. Your cash might be found on your balance sheet."
"The number one way people raise capital for their startup companies is called credit card debt... but there are other options!"
"From a cash flow perspective, I would suggest that you have underutilized resources with any interested party in your business's success."
I was working with a client recently. She is really sharp - she understands everything that I throw at her and always asks great questions.
In her case, she was anticipating a negative bank balance six weeks ahead. She hired me to help her organize expenses around this particular week, and to specifically find expenses that we could move around to avoid a negative balance.
We went from top to bottom on her list of expenses, which ranged from about $100 to $50,000. We tried to move some to a date after the week with the negative balance.
I realized that what we were doing was like moving chess pieces on a chessboard. Moving a large bill was like moving a king or queen; it could change the strategy of the game.
Moving a pawn - a small bill from $100 to $500 - would not make a huge difference, but if you move enough pawns they add up and can even win the cash flow game for you.
Are you interested in learning how to play chess with your cash?
If you are, check out my course Winning...
"Lenders prefer cash flow models, not just a profit and loss statement."
"I sat down and said, "I think I can figure out 99 ways to manage cash flow!" and I was wrong. I'm up to 135 ways to manage…so far!"
In the fall of 2018, I was working for an NGO that provided education loans to people around the world and I traveled regularly to Europe, Africa, and South America to meet with people who benefited from these loans. It was hugely rewarding emotionally; I was doing good in the world.
At the same time, I needed more. More of a challenge. More of something that I could call my own. Something I could do part time to meet my creative needs.
I wasn’t sure what to do, so I spoke with my wife and most trusted advisor, Lisa. We brainstormed options for a few weeks.
A Niche to Call My Own
As Lisa and I talked, we discussed the consulting work I’ve done. I’m good at it and it pays well, so why wasn’t that the solution? There were two issues:
It has been challenging articulating what I do when I consult because what I do was different for each client. My consulting approach...
Readers of my article “7 Proven Steps to Manage Your Cash with Ease” asked for more details.
In case you missed that article, or need a reminder, here are the steps.
1. Do Your Bookkeeping for Cash Management
2. Find Cash in Your Business
3. Make Quick Fixes
4. Work on the Big Cash Management Ideas
5. Forecast Your Quickly and Easily Cash
6. Manage Your Cash
7. See Your Results on a Dashboard
This article is an overview on how do set up your bookkeeping for cash management success.
Instead of a checklist or a “how to” article, I will tell you how a client (Rebecca) and I cleaned up the her company books. The company is “The Spa,” a high-end day spa.
(The method is from a real client, but the name and type of company are different to maintain anonymity.)
The End in Mind
Rebecca was stuck at about $3 million in sales. Her biggest concern was running out of cash, even with a big credit line and healthy profits. 2-3 times a month she was almost out...
Sales growth at all costs? Most of the clients that I work with have great sales, are growing revenue, or could grow revenue if they had additional cash to fund the growth. At the same time, every one of my clients is struggling to manage their cash.
After doing the basics of getting their cash management systems in place I almost always recommend that they fire some of their clients.
Yes, fire clients.
These clients are killing the company’s cash flow and slowing or eliminating the company’s ability to grow.
Which Clients Are Hurting Your Company?
There are two types of clients that hurt your company:
Client’s that hurt your profits and cashflow
Clients that hurt your productivity and moral