Lessons for Adversity
7. Create a detailed 13-week cash flow projection.
When facing adversity, your accounting statements from last month won’t help you. Profit and loss statements are useless when trying to understand the future needs of your business. Only a detailed, rolling cash flow projection will help you understand how much cash you may or may not have in the coming months. Also, every week, you need to reconcile a budgeted projection against actual results. This will help you fine-tune your projections and stay on top of issues in a timely manner.
Task: Create a detailed 13-week cash flow (for an example, see appendices).