Recently, Petra Coach presented a webinar, “Cash Flow in Crisis: The 7 Critical Levers of Managing & Maintaining” featuring Alan Miltz, co-author of Scaling Up.
If you’re a business leader, you NEED to see this.
You can find the full recording here.
To augment the recording, we noted takeaways and tips from the presentation. The slides used in today’s session can be downloaded HERE. Alan is also offering access to Cash Flow Story for 3 months at no cost – register HERE. If you have any issues registering, please contact email@example.com.
Definition: Keeping track of the movement every week of the change in your bank accounts
Seven Critical Levers that Impact Your Cash Flow
Converting a Balance Sheet into a Statement:
Two Components of your Operations:
Working Capital consists of three items:
The management team is responsible for Profit and Working Capital:
Q: What reasonable period length should we stress test for?
A: Start off with your December quarter and your March quarter and then do a projection for June 2020 quarter and stress test their number. Look at these every 90 days.
Q: How to request training for management team?
A: Go to the learning center on home page, go under videos. There is a 30-minute video that can be shown to the management team
Q: What reports should be looked at Weekly in the management meeting?
A: Look at revenue, product categories, discuss overheads, which overheads you can still attack, receivable days, who is putting pressure on you to pay, key profitability items that are changing.
Q: Would you advise against accrual budgeting?
A: Do not use terms like these to your management team, just show them the numbers and explain them. What has happened this week vs. last month. Just do things consistently