Despite the fact that cash is the lifeblood of the business, the fuel that keeps the engine running, most entrepreneurs don’t really have a good handle on the cash flow of their business.
I got a note from a guy recently about my online seminar titled How to Take Control of Your Cash Flow.
He had been running his business with the idea that if he had a good understanding of his profit picture that meant he had a good handle on his cash. If only it was that easy!
Try this test in your business. Look at your profit or loss for last month and compare that to the change in your cash balance for the month. They are never the same.
The secret is to understand, and be able to articulate, what happened to your cash last month.
Can you quickly explain what happened to you cash last month?