Are cashflow forecasts really important?
How do I prepare a cashflow forecast?
Said no small business owner.
Ever.
In fact, most small business owners I meet don’t even really know what a cashflow forecast is, let alone know how to prepare one.
They pretty much take it one day at a time.
Wishing.
And hoping.
But a cashflow forecast can have a massive impact on the financial performance of a business.
Massive!
And it links to sales and marketing, which many people think is more fun anyway!
So, why do one?
It’s your glimpse into the future
It shows if you’ll run out of cash
It shows when you’ll run out of cash
This gives you time to prepare and take steps
It helps set your sales targets
It shows the level of sales you need to cover your costs
This gives you far more control over your financial position
Which means you have far less stress
Which means you'll have better sex
So, as you can see, the reasons are compelling!
If you’re already using Cashflow forecasts, you’re in the top percentage of small business owners. You know how useful they are.
If you’re not using a cashflow forecast, it’s never too late to start.
Let us know if you need a hand. We’re happy to send you a really good template to use.
Peter & Kate
#smallbusiness #franchise