When you’re in business, every decision is ultimately a financial decision. Like it or not, you have to make these kinds of decisions all the time. And while there’s no super-shiny crystal ball to show you exactly how your choices will impact the future of your business, there is a way to make financial predictions that can put the “fortune” back in “fortunetelling.” It’s called Cash Flow Forecasting. And I predict you’ll want to know more.
Cash Flow Forecasting is an essential tool for business planning. Here are just a few ways it can make a world of difference in both your peace of mind, and your business growth:
Cash Flow Forecasting gives you a very clear way to differentiate between two valuable financial metrics – profit and cash flow. When you know and can predict your current and future cash position, you know exactly how much cash is available at one time, under any possible scenario. Fewer surprises means more stability—and a greater ability to comfortably plan your next move.
It’s especially important for small business and startups to know when money moves in and out of accounts. Cash Flow Forecasting lets you see cash shortages well in advance. Which gives you the time you need to negotiate with suppliers, secure financing, change credit terms with clients or tighten up your own payment terms so you don’t end up holding the bag. You’ll have a clear line of sight to whether you’re overspending in certain areas, so you can react accordingly. It’s so much easier to dodge bullets when you can see them coming.
If you have a business that answers to stakeholders and deals with investors, the ability to show them a clear picture of what the future of your business looks like, makes a huge difference. When you can show them best, average, and worst-case scenarios, it increases trust and accountability between you and investors. Not to mention, it gives you more solid footing to request further investment.
We’ve helped dozens of businesses like yours with Cash Flow Forecasting. We design and work through a variety of financial models and scenarios to help measure your ability to withstand financial problems, changes in the market, and how new technologies could effect your bottom line. We can even use it to help you answer questions like:
Do you have enough money to expand?
When can you hire new employees?
When can you expect surplus cash and what is the best way to invest it?
Can you afford to grow faster than you thought?
How much cushion will it take to keep you from being smacked around by every little change in the marketplace?
By testing these scenarios, we can show you how different decisions will impact your cash availability and future business plans. Our team has the experience and insights it takes to test these different scenarios, and give you the information and confidence you need to make the right moves.
Nobody wants to be the person who ends up wearing a barrel held up by suspenders because they’re low on cash. It’s uncomfortable and it’s a look that’s very hard to pull off. So call us and let us help you keep that cash flowing your way. Cash Flow Forecasting is smart business that can make you more profitable and put your mind at ease. Let’s talk about how our experts can bring financial solutions like this to your business.