Cash flow is a big deal. Everybody wants their business to survive. Everybody wants their business to grow prosperously. 

Cash Flow is vital for your business.  Without it, your business is on a one way trip to disaster.  In this weeks podcast episode of ‘I Hate Numbers’ I want to stress the importance of cash flow, discuss what it is and how you successfully manage it in your business. 

The costs of your business need to be met and you need cash for that.  Staff must be paid; overheads covered, loans paid, and your need to pay yourself. Those bills and commitments need to be settled in cash, not promises. 

Cash is important

Cash is necessary in any business of any size. If you fail to get adequate cash flow then your business will inevitably fail. A lot of businesses can survive periods of low profit, even losses!.  To do that you need access to cash. Strangely enough, profits and cash aren’t the same thing, profitable businesses can fail, loss-making businesses can survive.  Strange but true   

Cash Flow is the most important aspect of your business. And if you don’t have the right Cash Flow and know how to manage it then your business is done for. Finished. Forecast for the year and amend as you proceed and if you can’t do that then do what you can. 

Cash forecast

Cash Flow is a big deal, and we need to own it, and manage it.  You need to create a cash forecast for your business.  Look ahead, and think about what your business activity, your business story looks like.  Once you’ve got an idea of that then forecast the months ahead based on that future as best you can. 

Three things for your consideration. Firstly, produce a cash forecast then a cash budget, a cash report for your business is finding out the details. Forecasts and projections will detail your story and should be done typically for 3-6 months but preferably 12. 

Your cash future is based on asking three key questions

  • What is the future activity that impacts on money in or money out  
  • When does that cash event occur, in which month or week  
  • How often does that cash event  occur

Don’t even bother with numbers at this stage. When you figure what your future may look like then translate that activity into a financial number. Once you have a cash story then the power and magic happens. 

In a forever changing world when anything can happen at any given moment you should always plan for contingencies. You never know what’s next and one day your business will thank you for it.

In this episode

  • Understanding why Cash Flow is a big deal
  • Creating your future Cash Story
  • How to put together and manage your future Cash Story
  • Developing your own Numbers confidence and decisions
  • Take more control of your numbers to help make you money, survive and thrive


Cash Flow is a big deal.  Take control and produce and manage your future Cash Flow story.  Contact us to find out more.

What next

Grab a coffee. Make yourself comfortable. Sit back and listen.

I love doing this podcast and sharing my love of Numbers with you.  Check out the link to subscribe and do not miss an episode.