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Plan for every possibility.

Take control of your cash flow and forecast the road ahead

Cash flow and liquidity has never been so vital.

Every business wants to know what’s around the corner, both in terms of growth and opportunities, as well as pitfalls and dangers. Forecasting out these scenarios not only gives you a plan of how to move forward but a contingency plan if things change. 

Couple this with financial risks impacting the business such as declining gross margins, customer churn and rising operating costs – there is a lot you need to manage. 

Cash fuels your growth

The key to having healthy cash flows is to understand the two uses of cash and what investments are needed to reach the next stage.

We have a 4 step process to guide you through this...

Forecast & Roadmap

Creating a forecast outlining the revenues and expenses from your current operations and future expansion plans. Understand the financial impact of your plans, know what stage you will require additional cash, how to remain liquid and when to take action.

Microforecasts

We can model specific events without having to rebuild your entire forecast. When to buy assets, hire that extra team member, increase marketing spend or refinance.

Payment cycles

Knowing your payment cycles is critical to managing your liquidity.
Payment terms with your customers and suppliers must be clear.

It's a massive blind spot for most businesses and an area we see impact business cash flows the most.

Scenario planning with funding

Once you’ve set up your forecast, microforecasts and payment terms, where do the cash flow gaps appear?

Do you need to sources additional finance from your banks, lenders or investors?

Cash flow
the Journey?

business_journey

Your business follows a predictable pathway, from start up, to growth, to maturity and then to exit. 

The time scale and value creation will vary on many factors but this life cycle holds true. 

Plotting where you are on the lifecycle helps you determine the amount of cash your business needs to fuel it’s growth.  

Funding and liquidity gaps appear when you don’t understand your cash needs around operations and investments to get to the next stage.   

How much Cash will you need to invest over the next year?

Two uses of Cash...

Cash used to invest in growth. 

Cash used to fund mismanaged operations. 

You spend money everyday to try and grow your business. However, you may be spending your hard-earned money to cover expenses that don’t generate value for the business. 

One of the biggest concerns for small business is access to finance.

But raising additional finance without knowing your margins and cash burn can lead to bigger problems down the road. 

This leads us to our next important step…

finance_icon_colour

Know how to use financial leverage.

You already have multiple sources of funding that have come in over the years. 

Even though you can’t always see it, there is a cost associated with this money.

You must understand:

Gain deeper insights and plan for every possibility

Cash flow forecasting and formulating a funding plan makes you look at your situation with a clearer financial context. 

Fund your growth with smart money.

Not all sources of funding are created equal. 

There are 3 main sources of cash: 

  • Organic cash flows
  • Debt financing 
  • Equity funding

Each source will have different advantages and disadvantages depending on your business’ stage of development and whether the business is in Growth Mode or Profit Mode

Growth costs money. Because of that, you will need to balance ‘Growth vs Profit’. If you want to grow quickly, then you will need to move quickly. If you want more profit, you’ll move a bit slower. 

The decision around how you use your cash shouldn’t just relate to managing short-term liquidity. It should depend on whether you believe you will be able to earn greater profit later by choosing to grow now.  

Forecasting is key to making the right choices at the right time. 

Are you in Growth or Profit Mode?

The decisions around your cash and funding options should be clear

Organic Cash flow Debt Equity
Cost n/A Interest Dividends
Suitable growth plan Short term Medium term Long term
Risk to business Low High Medium
Ownership No impact No impact High impact
Involvement in the business No No May be required
Security N/A Required Not required

Get your cash flow forecast today

We'll turn your numbers into better cash flow to fund your growth