Here’s a very important tip for you that will pay huge dividends for you if you fry this into your brain and take action on it.
It is absolutely, positively impossible to manage your business intelligently without cash flow projections.
Cash flow projections help you answer important questions like:
- Can I add another location?
- Can I/should I hire a manager or staff?
- Can I pay my loan back on time?
- Will I have enough cash to get through the slow months?
- Can I buy the new equipment I need?
- Can I make an acquisition to help grow the business?
It is impossible to answer any of those questions without cash flow projections.
You take a huge risk with your business if you attempt to make important business decisions without a good, clear view into the cash flow implications of those decisions before you make them.
Because it’s a little too late after the decisions and the commitments are made.
(Here’s a free cash flow projections screencast video formatted for the iPhone)
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