HOW TO BUILD 6 MONTHS OF CASH FLOW

Step by Step Guide

Increase your price.

Decrease expenses.

Send invoices as soon as you can.

QUICK THINGS YOU CAN DO NOW!

Make it easy for clients to pay you.

Know the accounts payable team.

Break down the invoice into smaller invoices.

STEP #1

50% upfront

25% upon design approval or [X Date], whichever came first.

25% upon project approval or [X Date], whichever came first.

CHANGE CLIENT PAYMENT TERMS

STEP #2

Know what their competitors are offering and you can leverage their payment terms.

Guarantee a certain volume of business within a certain time frame.

Setup automatic payment with a credit card.

CHANGE VENDOR PAYMENT TERMS

STEP #3

Description of service.

When the work was performed.

Who the work was for.

Possible PO number.

PROVIDE DETAILED INVOICES

STEP #4

DEVELOPING THE CASH FLOW WORKSHEET

Identify goals of the business.

Identify revenue shortfalls.

Rank the priorities that need to be focused on.

Accurately project out how long your cash will last.

STEP #5CREATE YEARLY REVENUE & PROFITABILITY GOALS.

STEP #6INPUT ACTUAL DATA INTO THE CASH FLOW WORKSHEET.

INCOME & EXPENSES.

STEP #7FIGURE OUT YOUR NET INCOME.

ARE YOU MAKING MORE THAN YOU SPEND?

STEP #8FIGURE OUT YOUR AVERAGE MONTHLY SPEND.

STEP #9INPUT THE STARTING BANK BALANCE INTO THE WORKSHEET.

STEP #10WEEKLY SALES OPPORTUNITY MEETINGS.

DETERMINE WHICH OPPORTUNITIES YOU NEED TO CLOSE.

•Only Input opps that have >35% chance of closing in the next 90 days.

•Stage III = opps > 75%•Stage II = opps 35-74%

STEP #11FIGURE OUT YOUR ACCOUNTS RECIEVEABLES AND WHAT IS LIKELY TO COME

IN THE NEXT 30 DAYS.

STEP #12START PLAYING WITH THE NUMBERS.

STEP #13TAKE ACTION ON ACHIEVING THE GOAL & DEVELOP AN ACTION PLAN.

STEP #14

Repeat each month.

Gauge where the business is and where it is headed.

It is always easier to slow a slow car up rather than a car flying down the hill. If you do this, you will catch cash flow issues and have plenty of time to take every measure possible.

GOOD LUCK!Keep me posted on your progress and let me know if I can help.

Thanks,

Jason

IF YOU WOULD LIKE ME TO HELP...We can always schedule a consultation.

www.jasonswenk.com/work-with-me.html