The Cash Flow Focus Report is a simple, common sense tool for understanding your cash flow that only takes 10 minutes a month to complete.
It’s a big picture tool I use to understand the drivers of cash flow and put my finger on the pulse of a company’s cash flow.
It is designed to help you articulate the “2-Minute Conversation.” This is a short conversation where you demonstrate to yourself (and others) that you are on top of the cash flow of your business. (Because cash is the real bottom line in business.)
The 2-Minute Conversation in Action
One way to look at the 2-Minute Conversation is to imagine that you are about to sit down with your banker, or your business partner, or an investor (maybe even your spouse).
You have 2-minutes to briefly explain to them your financial results for the month. Not the nitty-gritty-greasy-grimy details. Just a short, big picture discussion about the company’s cash flow that enlightens the people you are talking to.
The goal of the 2-Minute Conversation is to provide them that understanding… while also demonstrating to them that you know what’s going on in your business. (Imagine their horror if they discovered that you, the person running the business, didn’t know what’s going on with your own cash flow!)
How I Use the Cash Flow Focus Report
If I work in the business, or I'm a shareholder or on the Board, I create the focus report every single month.
If I am looking at making an investment in a company (public or private), I create the focus report for the most recent year. It is a super-fast way for me to find out if I am interested in the company.
I recently looked at an intriguing small (publicly held) company and wanted to share with you the Cash Flow Focus Report I created (and show you how I created it). The company is Scott’s Liquid Gold, Inc.
Scott’s Liquid Gold, Inc.
Here is a brief recap of the history of the company from their website.
“Ida Goldstein, a widow with three sons bought the formula for Scott’s Liquid Gold for $350 in 1951. Her oldest son, Jerry, took the lead with the family business. For the next 49 years, he went on to build a trusted brand and thriving business. Jerry’s son, Mark, began working with his father after graduating from Syracuse University in 1978. Jerry and Mark worked together for the next 22 years until Jerry’s death in 2000. Today, Mark continues at the helm as President and CEO.”
The company develops, manufactures, markets and sells household and skin and hair care products. The Company operates through two segments: household products and skin and hair care products.
Their primary brands are Scott’s Liquid Gold, Alpha Skin Care, Prell, and Denorex. They also act as the exclusive distributor of products in certain markets. These products include 7th Heaven by Montagne Jeunesse and Batiste Dry Shampoo.
27% of their sales are to Walmart. 24% of their sales are to Ulta. (That’s a pretty heavy concentration with two retailers.)
Here is a link to the Cash Flow Focus Report I created for Scott’s Liquid Gold, the resulting 2-Minute Conversation, and the step-by-step process I used to quickly home in on, and understand, the cash flow of their business.
It is a great example that shows how fast you can get on top of (and understand) the cash flow of a business.
NOTE: You can grab a copy of my newest book at Amazon.

A Quick Start Guide to Financial Forecasting: Discover the Secret to Driving Growth, Profitability, and Cash Flow Higher provides a straightforward, easy-to-understand guide to one of the most powerful financial tools in business: a reliable financial forecast. It will transform the financial future of your company and help you make better business decisions. Get the book at Amazon.