Remember that business Cash Forecast we created together last month?
That was the quick, pen & paper table we wrote up that looked at the next six or so months of your business, and tracked the expected Incoming $, Outgoing $ and final balance for each month.
(Not ringing a bell? Find that post here.)
ONE of the great things that exercise accomplished was all the knowledge that came just through that one, quick, exercise:
- You figured out where your money is coming from.
- You figured out where your money is going.
- You spotted months where you have low incoming $ and high outgoing $
- You spotted overdue receivables that might – with a simple reminder – get more cash in the bank…
Knowledge is POWER and that Cash Forecasting muscle is worth building. It adds strength, control and a sense of calm to running a business.
When you’re watching what’s going on in your business, you can enjoy the confidence and calm knowing you’re on top of things. Like keeping your cool during the ‘Summer Slowdown’.
Most businesses are subject to some seasonality. Things slow down over the summer even more for service-based businesses because their own clients take vacation. I have clients whose businesses are powered by a program that launches in the fall – so summer is busy with prep, but slow with revenue.
If you’re not selling widgets 12 months/per year – if you’re offering courses or programs with a sign-up phase followed by a delivery or fulfillment phase – then your revenues may look like a mountain range, with significant peaks and valleys. Chances are, though, that your expenses are more like a flat, steady plateau.
All it takes to manage it and keep your calm demeanor is KNOWING.
Thanks to your Cash Forecast, you have a good sense that your September launch, October event and/or November ‘year-end special’ will generate another healthy dose of revenue to keep your business trucking. You can plan accordingly so you always have cash to manage the expenses comfortably. And so you don’t freak out when your bank balance gets low.
I want you to ENJOY the summer slowdown: a few cool evenings in the hammock and a day at the beach now and then. When you have your eye on your cash flow, then you can weather the peaks and valleys in revenue that are a natural part of most businesses.
If you’re having a hard time ‘relaxing’ as the owner of a service-based business, getting your financials in order is a critical step to re-establishing calm and control.
Here’s an idea: Join me on August 6th for “Profit Power: Simple Solutions to Boost Your Bottom Line”. In this FREE masterclass, I walk you through my tried-and-true approach to making smart saving and spending decisions, so you see MORE PROFIT in your business and who doesn’t want more profit?!? Click here to save your spot.