In This Episode:
The sixth of the six core areas is left until last on purpose. You need the previous core area, Monthly Numbers, working well before you’ll have the data needed to start and use this core area. And there’s usually more important or impactful core areas to work on before this one, but eventually, you’ll need to become Nostradamus.
I’m talking about Future Numbers.
Show Notes:
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Full Transcript:
The sixth of the six core areas is left until last on purpose. You need the previous core area, Monthly Numbers, working well before you’ll have the data needed to start and use this core area. And there’s usually more important or impactful core areas to work on before this one. But eventually, you’ll need to become Nostradamus.
[00:00:23] I’m talking about Future Numbers.
[00:00:26] Welcome to the Business Numbers podcast. I’m your host, Ben McAdam. I’ve helped over a thousand business owners with growth, profits, and clarity around their numbers, and I created this podcast to help you with that too.
Eventually, you’ll need to become Nostradamus.
[00:00:38] The sixth of the six core areas is left until last on purpose. You need the previous core area, Monthly Numbers working well before you’ll have the data needed to start and use this core area.
[00:00:50] And there’s usually more important or impactful core areas to work on before this one, but eventually, you’ll need to become Nostradamus.
[00:01:00] I’m talking about future numbers.
[00:01:04] Let me tell you about Jeff, one of my favorite clients. Jeff came to me wanting to grow, but he’d been stuck at the same revenue level for a couple of years.
[00:01:12] So we came up with a plan that would take him from $300 K a year to a million a year by the end of the year, and multiple millions in the years after. And he was happy with the plan.
[00:01:22] The plan involved investing money in great team members, so his monthly expenses were going to go up. He knew this. That they were gonna go up, but the amount was still uncomfortable.
So we worked on his future numbers, and he’s more confident about the plan, and because he’s confident in the plan, he’s sticking to it, and it’s working.
[00:01:34] Even though hiring these roles would lead to more revenue, and these people would pay for themselves, they just wouldn’t pay for themselves straight away.
[00:01:43] So we worked on his future numbers, and he’s more confident about the plan, and because he’s confident in the plan, he’s sticking to it, and it’s working.
[00:01:54] Predicting the future of your business can relieve your worries and help you understand the longer-term impact of your decisions. You can be both more at peace and more aggressive at the same time.
[00:02:06] Without a handle on your future numbers…
- You’ll ask yourself whether you should do a particular strategic move or simple spending decision, or higher so on.
- You’ll wonder whether you can afford it and worry about endless what-ifs. What if I get a surprise tax bill? What if this team member doesn’t work out? What if? What if? What if
- You might give up, scramble or go broke.
[00:02:34] By knowing your future numbers…
- We know we can afford something now and in the future
- We can run what-if scenarios like a chess grandmaster, and take confident action.
- We can build a business with longevity.
- We can feel calm and enjoy our growing abundance.
[00:02:54] There are a handful of projects that help with this, but the main one is a cash flow projection.
There are a handful of projects that help with this, but the main one is a cash flow projection.
[00:03:00] Oh, quick interruption. I’ve got a free resource for you. A quick exercise to find profits and cash. It only takes 15 to 30 minutes, and usually yields thousands or tens of thousands per year for my clients, and I give away the simple steps at profitscollective.com/QPH. QPH stands for “Quick Profit Hunt.” Now back to the episode.
[00:03:24] A cash flow projection is a simple spreadsheet that shows money going in and out of your business each month for six to 12 months or more into the future.
[00:03:33] You’ll be able to see your future bank balance, knowing how much buffer you’ll have in the future, not just what you can see today.
[00:03:42] With a cash flow projection, you’ll be able to see what hiring someone does to your future bank balance, for example. Maybe you actually can afford to hire, but you’ve been holding your business back because you didn’t know.
I won’t go through the steps on how to do a cashflow projection because I recorded a training on it a while back. If you want access to that, just shoot me a message, and I’ll send it over...
[00:03:53] Knowing when money goes out removes a lot of surprises, so cash flow projection will include not just expenses. But also things like tax payments.
[00:04:04] I won’t go through the steps on how to do a cashflow projection because I recorded a training on it a while back. If you want access to that, just shoot me a message, and I’ll send it over…
[00:04:14] So, question for you. How do you look at the future numbers in your business? How do you make spending decisions and longer-term financial commitments?
[00:04:25] A little thought about the future can go a long way into the future…? I’m sure there’s an opportunity for a bad joke or something in there somewhere.
[00:04:37] Anyway, that’s all I wanted to share with you today. Just a quick episode to think about how you could embrace your inner Nostradamus. And with a bit more knowledge about the future, maybe you could move a bit faster, be a bit bolder, and yet still be calmer, and the whole thing be less risky at the same time.
[00:05:07] So, I hope this is helpful. Let me know and reach out if you’ve got any questions about any to do with your numbers, not just this topic, and I’ll see you in the next episode. Thanks for listening.
So, question for you:
How do you look at the future numbers in your business? How do you make spending decisions and longer-term financial commitments?
[00:05:18] Thanks for listening. If this was helpful, please subscribe. Follow, rate, like, share, comment, all the things.
[00:05:26] Show notes are at profitscollective.com/podcast or businessnumberspodcast.com. If you want some help with growth, profits, and clarity around your numbers, go to profitscollective.com for more resources or to book a quick chat about working together.
