Top 5 must haves entrepreneurs need to know about managing a company's finances
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Transcript of Top 5 must haves entrepreneurs need to know about managing a company's finances
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Top 5 ‘Must Haves’ Entrepreneurs Need To
Best Manage Their Company’s Finances
It’s more than cash flow.
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There are plenty of challenges...
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Even more so if you don’t have financial
training
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Learn basic accounting
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Master the “Gospel of Cash Flow”
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It starts with revenue
generation
Get paid early: Deposits, early payment discounts,
milestone payments...
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Defer payments till the last day of
terms
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Key metrics
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Numbers that tell you you’re a-ok or
in trouble
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Two metrics you should track regardless
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#1 must watch metric: Net forecasted cash
flow
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“The difference between cash in and cash out”
#2 must watch metric: 30 days sales forecast &
backlog
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Key metric example: Distribution company
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“Shipping costs”
Costs impact other costs or revenue
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Think through any decision to cut costs
or spend money
“Spending $1K on a new computer makes your employee more
productive”“Versus spending 1K on a new conference table to impress customers”
Prove that you can manage capital
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Before asking for someone else’s
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Go to my blog for more advice