Ray Kroc, the entrepreneur behind the McDonald’s Corporation, stated, “I didn’t invent the hamburger. I just took it more seriously than anyone else.” Likewise, I didn’t invent Cash Flow Analysis. I have simply taken it more seriously than most people for over 20 years. Why?
- It is the “lifeblood” of your business, in fact, any business that is, as the accountants call them, truly “a going concern.”
- If you are ever short on Cash Flow (Also Known As the last four years 2015-2018), it is what both you and your lender wish you had more of, or, at least, will in the near future.
- Cash Flow is what you need to get approved for any business expansion and its associated plan for a repayment schedule.
- It’s what you need to maintain your “business sanity…”
- Positive Cash Flow is what you need to show potential buyers, if & when you ever want to sell your business. Why else would anyone want to acquire it? Sound Cash Flow is the “Viability Measure” by which potential buyers are going to measure the value of your business. All of these reasons are why I take it so seriously, and you should, too!
What’s the message here? As I’ve shared with you before:
“If you can measure it, you can understand it.
If you can understand it, you can control it.
If you can control it, you can improve it.”
Dan Sullivan, Founder of The Strategic Coach
These are the reasons that I take Cash Flow so seriously. Without it, everything seems like an uphill battle, but when you have solid Cash Flow, there’s no stopping you in your endeavor to become more successful! Think about it.
