MONEY, MONEY, MONEY WHERE IS MY MONEY???

WHAT IS CASH FLOW, AND HOW DO I ‘MANAGE’ IT?

Cash Flow for most people is simply ‘cash in-cash out’.

Real Cash Flow Management includes much, much more.

It is the umbrella that covers everything of value-Your Business Assets

Things to consider when you are looking at Cash Flow include: Inventory Equipment Fixed Expenses Variable Expenses People; and the cost of them Time

There's no reason to be the richest man in the cemetery. You can't do any business from there.

Colonel Harlan Sanders

You can’t do it all alone without ending up alone.

The time people in small businesses lose track of is their biggest financial investment, and often, their biggest mistake.

YOUR BOARD OF DIRECTORS

You have one – no matter what!

You always let people know the Board exists!

You always consult the Board!

You always give them time to think!

ASSEMBLE A TEAM-YOUR TEAM

They are your consultants.

They provide a system of checks & balances for everyone’s work, including yours.

They keep you on track and out of trouble.

They save you money.

They ‘fit’ the pieces of the puzzle together.

They keep you ‘human’.

They give you back your most valuable asset- your time.

RELYING ON THE TEAM

Building a Team requires building relationships.

If you want a strong Team, you need strong relationships.

Team members should know each other – Invite them to lunch, to a company party or other event in order to be sure they do.

Team members should coordinate activities and communicate with each other-email is the most cost effective way.

Remember that YOU are a Team member-in fact, you are the team Captain, and need to be just as involved, concerned, and aware of what is happening as any other team member.

WHO IS ON THE TEAM?

Accountant/Bookkeeper Lawyer Insurance Agent Bankers/Lenders Local Business Support Groups LinkedIn Groups Industry and professional contacts. YOU BEWARE: Family & Friends can be your most expensive

professional and personal mistake. Hire people based on skill and preserve the relationships you have.

Talk to your Board of Directors about who to include before you add members.

THE MOST IMPORTANT REASON FOR THE TEAM??? SHHH! SOMEONE IS WATCHING YOU-AND YOUR MONEY!

Regulatory Agencies Health Department. Licensing Agencies Government Agencies

Local, State & Federal

The World Competition Clients, those you have, those you lost, and those

you want Opportunists

CASH FLOW NO-NO’S

Dipping into the cash drawer Dipping into your pocket Purchasing personal items with

corporate funds Purchasing company items with

personal funds Family and employee loans Failure to Document

CASH STRAPPED? BORROWING OR LENDING BASICS

Have a pay back plan- with interest, and honor it, no matter who the lender is!

Document, document, document! Consult your Board of Directors –

You DO have one! Work with your Team. Remember-Someone, in fact lots

of people are watching, especially the IRS.

KEEP A “PAPER” TRAIL

Use a strong software program to record all expenses and income.

BACK UP YOUR FILES

Save receipts. Annotate EVERY receipt when you get it.

Sign EVERY check

Balance EVERY account

Pay Every bill- On time, every time.

Plan with your accountant. Share records regularly.

EDUCATE YOURSELF

Free & low cost opportunities SCORE Women’s Business Center Small Business Administration Conferences/Seminars/Classes Chamber Events LINKEDIN Groups Public Library

GET YOUR PERSONAL FINANCES IN ORDER

You are the foundation your business began with, and the one it continues to build upon. Don’t be a money tree, for yourself, your

family, or anyone. Read Take classes Ask questions- You do have a Team

to rely on. Implement what you learn.

Have a plan (and include your family)

Budget Investments other than your Business Wills and Trusts Education Retirement Vacations and time off Disability Long Term Care Contingency operating plan for business.

BE OBSESSIVE COMPULSIVE “Its not what you make-its what you KEEP.”

“Millionaires are not made on dollars, they’re made on dimes.” Andrew Carnegie

“If I don’t have the cash in the bank, I can’t afford the credit.” Bob Kiyosaki

“Life is a game-Money is how we keep score.” Ted Turner

“A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.” Robert Frost

“Neither a borrower not a lender be; for loan oft loses both itself and friend.” William Shakespeare

Your business is like a vehicle, designed to get you from where you are, to where you want to be.

How you manage your cash flow, both in the business and personally, determines what you will drive, where you can go, and what you can do as you travel.