Anyone who has ever started a business or run a business knows that there are a lot of things to monitor to make sure everything goes well. And the one thing that is critical to success is having sufficient funds to keep operating.
Years ago, we were involved with a startup and had the good fortune of finding a template for a cash flow that assured we would understand our current and projected cash flow needs easily. The weekly process to update it was simple, but it was important to complete the updates on schedule. We’ve used the template religiously for any business we have been involved with, and it has been a critical component of our success.
Recently, we ran across a statistic that has been widely quoted: 82% of businesses fail because of cash flow. And that’s when we decided we needed to share our Cash Flow Updates process. It tells you exactly what your cash position is now and exactly what it will be in the next month, six months, year, and more, as long as you update your numbers accurately each week. You will see when you could have a shortfall, so that you can figure out what you need to do to have sufficient cash available to keep operating.
We hope it helps you succeed! Let us know if you need any additional information or have any suggestions. Here’s to your success!
The Cash Flow Updates Team