Every chapter of my book Wind In Your Sails: Vital Strategies That Accelerate Your Entrepreneurial Growth ends with the section Take Action Now. Here are my actions for finance.
The most valuable companies in the world know how to make money. They also know that financial statements are just a tool to help them deeply understand how their business is operating and how they can improve both their top and bottom-line revenue. Financial planning means not just understanding your cash flow, but how much capital is needed to generate that cash flow. Great businesses know where they are all the time. Know where you are financially by:
- Measuring your cash every Monday morning and tracking how it changes over time.
- Identifying one key number that can be derived from your financial statements to drive your growth within this quarter.
- In your next yearly plan, have agreement from all senior management team on the exact amount of financing you need to fuel your next year of growth.
