How to Avoid Icebergs and Keep Your Business on Track
I watched a classic film the other day – Titanic. Remember when that came out?
The beautifully crafted ship on its prestigious maiden voyage to New York full of society’s richest and most important people.
The journey was going so well until the fateful iceberg situation. The first-class guests were socializing, networking, and having fun at a beautiful dinner in the captain’s honor.
Unsurprisingly the Titanic’s lookouts weren’t believed when they said they couldn’t see the iceberg in advance, and only managed to see it 37 seconds before impact!
Their view was unclear due to a mirage of sorts caused by the cold weather, and false horizon, hiding the view of the iceberg.
Seeing the iceberg too late is a bit like seeing the true financial health of your business too late.
Many business owners have a feeling that perhaps something is not quite right in their business.
The numbers just aren’t adding up…the money comes in then straight back out again? But then, the revenue that’s coming into the business is really good?
It’s confusing, and you’re not alone here, but many business owners only identify what’s really the situation with their finances when they are far too close to the iceberg.
The most effective way to give yourself a bit more time to change course, in the event of unforeseen obstacles aka icebergs, is to plan your cash flow.
There are many misconceptions about cash flow planning, and that it’s just a bunch of numbers that don’t tell you much, or that you need to be a numbers genius and know everything about spreadsheets, etc.
I’m here to tell you that these are wrong, and with the right bookkeeper, the cash flow planning can be done for you and explained in a way that makes sense to your business, and helps you avoid catastrophes.
Planning your cash flow in and out of your business for the next two months means you can identify possible icebergs ahead and change course (instead of just having 37 seconds to notice such an iceberg!)
Cash flow planning can identify all sorts of useful information, it can tell you:
⛵How to grow while not overstretching yourself
⛵If you’ll run out of cash (in advance, so you have time to fix things)
⛵It’ll give you a good indication of your pricing and margins are right
⛵It’ll show you exactly where all your money goes to
To help you get started I’ve created a guide: 7 Steps To Fix Cash Flow In Your Business click here to download a copy.