Here are the results of the 2-question survey from last week about cash flow.
Question 1: Do you look at your Cash Flow Statement every month?
Question 2: Can you answer this question in a 2-minute conversation – "What happened to my cash last month"?
Two things of note in the results.
First, 82% of the responders look at their Cash Flow Statement every month. One reason that number is so high is many of those who follow my blog are financially oriented people – what I like to call serious-minded entrepreneurs. And many readers/followers are advisors to entrepreneurs, business owners, and CEOs.
They know and respect the financial side of their business.
Think about it. Reading my blog every week would be painful for a person who didn't care much about financial performance in business! I'd drive them crazy with my focus on profitability and cash flow. J
Second, almost the same percentage of those who look at their Cash Flow Statement say they can explain what happened to their cash last month in a 2-minute conversation.
I like the 2-minute conversation test because it means you have a good understanding of the big picture view of what happened financially last month. It's a great test of whether you have the financial side of your business under control.
It's no surprise that if you pay attention to cash flow (look at it every month) then you are more likely to understand what's going on with the cash (at the financial statement level).
And you will make better business decisions when you fully understand the financial and cash flow implications of your decisions.
If you have not seen it yet, check out the 2-question survey and see how you compare. It's super-fast.
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