“Is my business going to run out of money?”

“Is my business going to run out of money?” is a question I get sometimes, and there is a way to tell.

There are two ways that we business owners tend to answer that question if we’re not just trying to ignore it, pretend it doesn’t exist.

One is building up a ton of savings.

But then the money’s just sitting there doing nothing.

The other way is just hoping everything will be fine, but then we’re stressed and don’t sleep well.

So we either lie awake at night stressed or you waste your potential by just having savings sitting there doing nothing.

There is a third option.

It’s called a cash flow projection.

It’s a simple spreadsheet that will show you your bank balance month by month, six to twelve months in the future.

My clients Kevin and Jen used a cash flow projection while they were growing their business.

So they made sure they weren’t going to go broke as they increased their ad spend to generate more revenue, and as they increased their stock purchases to fulfill that revenue.

They went from $300k to $4m a year in annual revenue without collapsing from stress and without going broke because they had a cash flow projection.

And my client, Andy, was similar as well.

His agency sold for two times the normal multiple because they had a cash flow projection to help them grow.

With a cash flow projection, you don’t have to worry whether you run out of money.

You can just look.

If you want some help with a cash flow projection, DM me on Instagram @benmcadamig.