#194: Mastering Your Cash Flow: How to Get Clear, Get Intentional and Get Going

Today, more than ever, I have watch businesses of all sizes, industries and locations buckle down to figure out what this new economy means to them, their business and their future cash flow.

I've seen companies with millions of EBITDA disappear and entrepreneurs with a few hundred thousand in EBITDA explode with growth. Regardless of what end of the spectrum you are on, getting a handle on what cash is coming in and out the door is crucial. 

There is a way to get visibility into your cash that helps you get through this storm and also sets you up for success so you can "afford"​​​ to grow at the pace you want... and with the right kind of growth. 

My business partner Pat Hobby and I will be discussing how the most successful companies master their cash flow by building out forecasts and budgets that align with their strategic plans and revenue targets.

​We talk about the steps you need to do, how to be intentional, make a plan, and come out of this ahead by building a 13-week cash flow statement, revising your budget and forecast and then building a plan for long term value growth.

Some of the things we discuss in today’s episode –

• • How to balance today's storm with your future plans for the business
  • How to build a financial foundation that gives you visibility into your cash flow
  • The key components to a 13-week cash flow statement and why you need one
  • How to use a 13-week cash flow dashboard to work with your stakeholders
  • How to build an annual budget from the ground up
  • How to get visibility into your line of credit usage for the rest of 2020
  • What you can be doing to revise your sales forecast
  • How to combine your sales forecast with your budget to project your 2020 net income
  • How to avoid decisions that you will regret (like taking on too much business debt)
  • How to set yourself and the company up for value growth and potential acquisitions
  • How to project out your growth and what it is going to cost you (and where you'll get the money)
  • Where to find the Mastering Your Cash Flow Video Series and the new Intentional Growth™ Digital Course

Main takeaway

We want to help. I hope that the Mastering Your Cash Flow Digital Course can help get you where you need to be in order to get through this crazy time on top of your game and with a plan. Let’s build a plan to get a solid foundation for you and your business. You’ve got to get going and get intentional right now.

Quotes:

“There are very specific things that we can be doing because everybody’s balance sheets are shrinking right now.” - Ryan Tansom

“Get clear, get intentional, get growing.” - Ryan Tansom

“Don’t just look at topline revenue for the next two or three years. Don’t just blindly grow, blindly take out debt. There are 12 years of that. Quit doing it.” - Ryan Tansom

“When this passes--and this will pass--you want to be in a position where you can grow your business.” - Pat Hobby

“Getting some clarity on where I’m at today and how I get through the next quarter and the next year, in a way that sets me up for the future is the key.” - Pat Hobby

“You should be monitoring your cash flow as a part of an ongoing financial analysis process.” - Pat Hobby

Resources:

Mastering Your Cash Flow Digital Course

ARKONA Boot Camp

Reach out to me if you have questions about the boot camp!

You can also reach out to me via email at [email protected], on my LinkedIn, or you can call me at 612-720-6530.

Check out the next Intentional Growth™ Boot Camp -

Because of the current situation, Pat and I are working on a digital video course on the Intentional Growth™ 5 Principles. It will be the best of the material we have in our 2-day Boot Camps that normally costs 5k for $995. Text the word Intentional to 66866 to get on the waiting list of the digital course.

We’ll teach you how to build a valuable company with the end in mind using our 5 Intentional Growth™.

1. In principle #2 - You’ll learn everything about how companies are valued, deal structures and how to calculate net proceeds (this helps if you want to know how much your company is worth, looking to buy a company or eventually want to sell)
2. In principle #3 - You’ll learn how the 5 major exit options (Internal, ESOPs, PE and more) work & the implications of each
3. Principle #4 - you’ll learn how to increase your multiple by derisking your company and building value for the long term build a financial model that ties to your strategic plan and what it takes to grow value for the long term.