Knowing your numbers is an art, not a science.
I’ve been a CFO for 10+ years, so let me break down the essentials tools you need to master your numbers:
I’ve been a CFO for 10+ years, so let me break down the essentials tools you need to master your numbers:
• Financial Statements
Financial Statements tell a story.
Your ability to dissect and tell that story can often be the difference between success and failure.
I break down the 3 statements in this thread, if interested:
Financial Statements tell a story.
Your ability to dissect and tell that story can often be the difference between success and failure.
I break down the 3 statements in this thread, if interested:
• Cash Flow Forecast
All businesses should have a 13-week cash flow forecast. It helps you “see around the corners” before things go bad.
13 weeks is enough time to react and avoid problems that you otherwise would have realized too late.
All businesses should have a 13-week cash flow forecast. It helps you “see around the corners” before things go bad.
13 weeks is enough time to react and avoid problems that you otherwise would have realized too late.
• Revenue projections
When looking at revenue growth, you want to understand:
▸ Past trends
▸ Economic trends
▸ Executed contracts
▸ New potential contracts
No projection is perfect, but it leaves you more prepared for all potential outcomes.
When looking at revenue growth, you want to understand:
▸ Past trends
▸ Economic trends
▸ Executed contracts
▸ New potential contracts
No projection is perfect, but it leaves you more prepared for all potential outcomes.
• Budget
A budget isn’t sexy, but it:
▸ Forces you to plan
▸ Creates an expectation
To create a budget:
1. Look at the last year's expenses
2. Identify what will repeat & what won’t
3. Think about future plans; what new expenses will you have?
A budget isn’t sexy, but it:
▸ Forces you to plan
▸ Creates an expectation
To create a budget:
1. Look at the last year's expenses
2. Identify what will repeat & what won’t
3. Think about future plans; what new expenses will you have?
• Strategic Plan
Business is a grind, so you have to be intentional about stepping outside the day-to-day.
A strategic plan allows you to look into the future, create a plan, and start working the plan… TODAY.
Business is a grind, so you have to be intentional about stepping outside the day-to-day.
A strategic plan allows you to look into the future, create a plan, and start working the plan… TODAY.
• Annual Plan
You may be saying… Kurtis, we have a Strategic Plan… why an annual one too?
Strategic is 3-5 years. Annual is looking out 12 months.
Without bringing the Strategic Plan into the next 12 months, it’ll likely never get done.
This is an essential step.
You may be saying… Kurtis, we have a Strategic Plan… why an annual one too?
Strategic is 3-5 years. Annual is looking out 12 months.
Without bringing the Strategic Plan into the next 12 months, it’ll likely never get done.
This is an essential step.
• Meeting Cadence
Plans without action are meaningless.
A regular meeting cadence allows you to put plans to action.
I like the model from the book The Advantage:
▸ Daily check-ins
▸ Weekly Tactical
▸ Monthly Strategic
▸ Quarterly Off-Site Reviews
Plans without action are meaningless.
A regular meeting cadence allows you to put plans to action.
I like the model from the book The Advantage:
▸ Daily check-ins
▸ Weekly Tactical
▸ Monthly Strategic
▸ Quarterly Off-Site Reviews
Do you want to take your business to the next level?
Do you want to know how to go “beyond the numbers” in your business?
Yesterday @IAmClintMurphy and I opened enrollment to our new cohort Beyond the Numbers.
Enroll today:
maven.com
Do you want to know how to go “beyond the numbers” in your business?
Yesterday @IAmClintMurphy and I opened enrollment to our new cohort Beyond the Numbers.
Enroll today:
maven.com
@IAmClintMurphy Did you enjoy this thread?
Follow me (@KurtisHanni) and share it with others, so they can learn too.
Follow me (@KurtisHanni) and share it with others, so they can learn too.
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