This Power Tip will help you use your cashflow management skills to do scenario planning for your business, and to review investment opportunities.
These cashflow management skills are important as you plan and grow your business.
- A good place to start is to consider what would happen to your cashflow if you only achieved half the expected sales? What would you do and how would you manage your costs?
- The best way to do scenario planning is to use your cashflow spreadsheet. Analyse your cashflow and how it changes with different scenarios.
- A cashflow spreadsheet can also help you pick the right time to make a new investment in your business.
“John, my business coach was such a great mentor and helped me out every bit of the way. It’s good to see the planning through the cash flow forecast – how much your income is and how much you’re spending. I didn’t realise how much I could be making at the end of each month. It was a good overview. I think I got a better understanding of how businesses work. When we were working through the business plan, John was telling me stuff I didn’t even know about. That was really helpful.” – Zara, Makeup by Zara Parker, Pilbara WA
Did you love this small business Power Tip? There is always more to learn about your small business as your business journey continues and evolves. A good way to learn is to put aside some time every week to look at a new Many Rivers Small Business Resource.
For existing clients, make sure you reach out to your business coach if you have any more questions about this topic. It is always a good idea to talk about what you just learnt. They might even have some more tips to share with you.
If you are new to Many Rivers, find out more about what we do by looking at some of our client stories. Each of our clients have a very different journey to share about their business and their experience working with Many Rivers. You can read about the different programs we have available here.
Watch our Scenario Planning video for more information on using scenario planning for your business.
Do you have a passion or small business idea? Or maybe you have a business that you would like to expand or that needs some business coaching support?
We’re here to help.