Posts Tagged ‘Win Big’
Win Big - Monday, February 11, 2013 15:11 - 12 Comments
Start Small Win Big: Your Week 4 Action Plan
Step 4: Understand your finances. A couple of months ago I spoke to a woman who owned a struggling stationery business and I asked her how much longer she thought she could survive based on how much cash she had available in her company. She looked at me like I had just landed from Mars. Then I asked her how much money she spends a month. Again, blank stare. So I asked her how much cash she brings in a month. By now you can guess what the reaction was.
This is a scary place to be.
While digging into your business’s financials may not be your idea of a good time, you are shooting yourself in the foot if you ignore them. So this week’s assignment is to build a 12-month cash flow statement.
Wait, come back, I’m here to help.
Your cash flow statement may be the most important financial statement you create because it helps you get a handle on how much cash you have on hand at any given moment. During the recession I spoke to a lot of business owners who had to close down their businesses, not because they didn’t have customers coming in, but because they did not have enough cash available to help them weather the hard times. With a better understanding of their financial situation, they might have made it.
Running out of cash should never come as a surprise. And if you stay on top of your cash flow, you can plan ahead to deal with an upcoming period when money will be tight. You do not want to wake up one day and realize you do not have enough money in your account to pay your vendors or your employees.
So let’s get started. First, what is a cash flow statement? It’s simply a record of two things: the cash that’s coming into your business and the cash that’s going out of it. That’s it. Really.
Resources:
12-Month Cash Flow Statement on SCORE.org
Also on SCORE.org: Business Plans and Financial Planning Documents
Editor’s note: This is the fourth of eight installments for SUCCESS’s 2nd annual Start Small Win Big entrepreneur challenge. If you’re not signed up for Start Small Win Big, it’s not too late. Visit SUCCESS.com/winbig to join.
- Start Small Win Big: Your Week 2 Action Plan
Step 2: Keep it simple. A couple of years ago at my company Goodsearch.com, we started asking each other a simple question whenever we’d put together any marketing materials.It was: “Would Michael’s mother understand this?”
It turned out to be a great litmus test. So often, we make things more complicated than they need to be. It’s understandable. As small business owners, we’ve all worked hard on our offerings and are excited about every single feature we’ve developed—whether as part of a product or a service. It’s hard to imagine not including all of this in all of your materials. But, talking about too much gets confusing for an outsider who CONTINUE READING
- Start Small Win Big Challenge 2012 Call for Essays
Don’t forget this Monday, April 30 Monday, May 7 is the final deadline to submit your essay form for the Start Small Win Big entrepreneurial challenge. Visit SUCCESS.com/winbig for the essay submission form. You could win lunch and personal coaching sessions with Good Morning America’s Tory Johnson and SUCCESS Publisher Darren Hardy! Plus, you could be featured in SUCCESS magazine, [...]
- Start Small Win Big 2012–The Cliff Notes Version
We’re nearing the end of the SUCCESS Start Small Win Big Challenge and it’s time to start gathering your thoughts for the final essay submission. Before you get test anxiety, don’t worry–we’ve provided a number of tools and links here to help you. Consider this the test review your professor gives before mid-terms. Pre-Contest During registration, [...]
- Start Small Win Big 2012: Your Wk 12 Action Plan
Congrats! You’ve made it to Week 12 of the Start Small Win Big entrepreneurial challenge. For the final step this week (April 9), read the April 2012 issue for Step 12: Track your time/demand a larger return. Then check your inbox for the April 9 Start Small Win Big newsletter. This week’s assignment is about preserving your [...]
- Start Small Win Big 2012: Your Wk 11 Action Plan
For Week 11 (April 2), read the April 2012 issue for Step 11: Identify Collaborators. Then check your inbox for the April 2 Start Small Win Big newsletter. This week’s assignment is about collaboration. Within your industry, who are potential promotional partners? Be creative, because it may not be obvious at first. Examples: A financial adviser partnering [...]
- Start Small Win Big 2012: Your Wk 10 Action Plan
For Week 10 (March 26), read the April 2012 issue for Step 10: Pitch the Media. Then check your inbox for the March 26 Start Small Win Big newsletter. This week’s assignment is about finding and creating media coverage for your small business. That means thinking like a journalist. Here are 8 do’s and don’ts for [...]
- Start Small Win Big 2012: Your Wk 9 Action Plan
Your Week 9 Action Plan For Week 9 (March 19), read the April 2012 issue for Step 9: Ramp Up Social Media Activity. Then check your inbox for the March 19 Start Small Win Big newsletter. This week’s assignment is about social media for your small business. Take a look at your social media efforts and evaluate whether [...]
- Tory Johnson: Why Aren’t You Reaching Your Goals?
Good Morning America’s workplace contributor Tory Johnson asks SUCCESS Start Small Win Big entrepreneurial contestants an important question.
- Start Small Win Big 2012: Your Wk 8 Action Plan
Your Week 8 Action Plan For Week 8 (March 12), read the March 2012 issue for Step 8: Don’t Reinvent the Wheel. Then check your inbox for the March 12 Start Small Win Big newsletter. This week’s assignment is about being inspired by what your competitors do well. This week’s assignment is to do some snooping. Let’s [...]
- Start Small Win Big 2012: Your Wk 7 Action Plan
Your Week 7 Action Plan For Week 7 (Mar. 5), read the March 2012 issue for Step 7: Change Your Environment. Then check your inbox for the Start Small Win Big newsletter. This week’s assignment is about creating your perfect, productive work environment. Take a look at our inspiration wall below and use this to get excited [...]
- Start Small Win Big 2012: Your Wk 6 Action Plan
Your Week 6 Action Plan For Week 6 (Feb. 27), read the March 2012 issue for Step 6: Create a Top 50 List. Then check your inbox for the Feb. 27 Start Small Win Big newsletter. This week’s assignment is about making your list of top 50 sales prospects or people you’d like to do business with. [...]
- Tory Johnson: What Exactly Do You Do?
You’ve been there before, at a party or picnic or whatever: Ask a stranger what he or she does and 10 minutes later you’re still listening, but your eyes have glazed over because you still don’t have a clue. All you want to say is, “See ya!” If you do that in business — if [...]
- Start Small Win Big 2012: Your Wk 5 Action Plan
Your Week 5 Action Plan For Week 5 (Feb. 20), read the March 2012 issue for Step 5: Know Who You’re Targeting. Then check your inbox for the Feb. 20 Start Small Win Big newsletter. This week’s assignment is about knowing your clients. Think about facts about your product or service that might influence your potential customers. From these [...]
- Tory Johnson: Secrets of High-Achieving Entrepreneurs
Ever have those days when you wake up determined to tackle specific challenges? You have the best intentions about all you’re going to accomplish and you can feel the sense of elation that you’re sure you’ll experience. Then the phone rings, the dog barks, someone needs you to drop everything to help with the unexpected. [...]
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