The rollercoaster ride of living from a sales flood to drought can often be unnerving and stressful for both the uninitiated as well as the seasoned business owner.
Planning is the key to survival, and realistic cashflow planning is a business’ best friend.  This planning though need not be complicated.  Keep it simple, be reasonable with revenue estimates, and also with your outgoings!

You can find plenty of cashflow templates online, but a simple spreadsheet highlighting your expected monthly revenue and outgoings projected over a 12month period should do it.  We use an excellent spreadsheet to do this, integrating it into your profit plan for the year.

Just remember – don’t let your cashflow forecast gather dust – it is a dynamic document that must be regularly updated.

A well prepared and maintained cashflow forecast will highlight the ‘surges’ and let you plan purchases without you hitting the bread line. It should also play a key role in determining your marketing and advertising plan.

A great piece of business logic is: ‘The busier your business is, the more you should promote’. It is counterintuitive and not something that most businesses do.

Most wait for a lull in sales, panic and then start marketing their products and services. If you’re aiming for steady and consistent cashflow – you have to plan for it months in advance.

Growth without a strategic plan in place often results in confused and unhappy clients and team.

Running a business is more than just looking after your current clients, it is also about growth.

So don’t rely on chance or luck for growth – articulate your vision to your team and clients, plan your marketing accordingly and watch that cashflow turn from a fun park rollercoaster to a relaxing & leisurely cruise.

For assistance with cashflow planning, please contact Jeni Wilcock.