Finance Fundamentals
Nick discusses the vital tool that any business needs when it starts and if it is to continue growing successfully- a cash flow forecast.
Any information from an accountant is retrospective but a cash flow forecast is forward-looking.
When you can take your revenue target and create a plan that means you know what you need to sell you are able to make better decisions and Nick explains exactly how to do it and shares the expert empires cashflow template in this episode with great content.
KEY TAKEAWAYS
The cash flow forecast is a vital element in any business It allows you to see the cash position week on week. The more the fixed costs increase the higher the minimum cash flow required in the business. A cash flow forecast is forward-looking. Combine your vision with the financial results you want for the year to create a revenue target for the year. The overall revenue target can then be broken down into months and combined with the number of products and services that need to be sold to achieve the target revenue A plan shows what you are going to sell, when you are going to sell it and how many sales are needed to meet the targets set When you are a smaller business and more agile managing cash flow week to week works best.
BEST MOMENTS
‘The most valuable tool for me is having a short to midterm cash flow forecast’
‘It means you can make better decisions and sleep at night’
‘I was able to make better decisions because I had a plan’
VALUABLE RESOURCES
ABOUT THE HOST
Nick James
Nick dropped out of university at the age of 21 and failed spectacularly with his first coaching business, which forced him to take a £16k/yr telesales job.
Within 12 months he was the top performer and left to start his second business at 24. This time he discovered a winning formula and before long had a multi-six-figure company.
He then made a huge mistake which nearly put him out of business and cost him £50,000 in personal cash!
Fortunately, Nick kept it afloat, turned it around, and sold that business 2 years later in a seven-figure deal.
He then co-founded a multi-million-pound marketing company, which he exited in 2015, and created Expert Empires.
Today, Expert Empires is known as the UK's number one business event for Experts, with world-renowned celebrity speakers like Gary Vaynerchuk, Grant Cardone, Chalene Johnson, David Goggins, and Lewis Howes gracing the stage.
Nick also specialises in helping Coaches, Consultants, Speakers, Trainers, and Authors take their businesses from zero to seven figures and beyond through his Expert Empires Mastermind programme.
