What is the ONE Thing
Your Business Needs in 2018?
I know, it’s an overwhelming question. I would fully expect you to say “I need so many things for my start-up, how can I narrow it down to just one thing?” Don’t worry…I have an idea, which you can build on and take from there.
A REAL Cash Flow Forecast for 2018
Cash flow forecasting is done incorrectly in about 112% of the cases, I’m convinced. I have built them incorrectly my entire career, so I think I can say that without error or fear of being ridiculed.
Here is how I’d recommend you build a cash flow forecast for your start-up or newly-formed small business:
I have built so many cash flow forecasts that were outdated the minute we prepared them. They were always built from the top-down, starting with revenue projections. When I started building them from the bottom-up, things looked completely different. These forecasts are almost alive in a way since the revenue is a direct function of what you hope to pay yourself and what the business has to pay on a monthly basis to survive.
Anything over and above that amount of revenue is gravy and more profit that you can reinvest in the business! A sign of success, I would say. You can see in a split second if you’re doing better than you need to, or worse than you need to, and you can make adjustments from there. We talk about this constantly in Godwin Start-Up School.
So, that’s my answer for you. But you may have other things in mind for your start-up in 2018. Let me know what your small business or start-up needs, and then let’s see if we can help you.
Happy New Year, Entrepreneurs!
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