How a cashflow forecast can help you survive financial difficulties

In today’s demonstration of why a cashflow forecast can change your business or your life, see how a cashflow forecast can help you survive financial difficulties from this real life example a business who used cashflow forecasts to survive the GFC and still be operational today, over 10 years later.

Transcript

In today’s demonstration of why a cashflow forecast can change your business or your life, I want to use the real life example a business who used cashflow forecasts to survive the GFC and still be operational today, over 10 years later.

Now when I first got involved with this business, they owed the ATO and other people in excess of $300,000. Their revenue for the most recent month was about $50,000 their wages bill was $70,000 and they had not made a profit in months.

But instead of shutting up shop, we put together a plan to help this business survive.

Obviously the first part of the plan was getting payment arrangements in place with the key creditors.

The second part of the plan was implementing cashflow forecasts. Every Friday morning at 10am we would all get on a call to look at the weekly cashflow forecast. We would have a look at what was due for payment over the next week and the next month and see where there was going to be problems paying some people. If there was going to be a problem paying some one, especially the ATO for example, we would make decisions today and get on the front foot and talk to the appropriate creditor. And if necessary make alternate actions.

This was really important with the ATO because they had the option to basically put the company into administration and even apply director penalty notices. Potentially meaning some of the directors could have lost their house.

Now these weekly cashflow calls continued whilst all the debts were repaid and after that it still continued because the next objective was how to fund the businesses international expansion. Those weekly cashflow calls continued, but they were now across multiple countries.

Roll forward to today, that business is still operational, now in 4 continents. If that cashflow forecast and those cashflow forecast calls were not done, back in the GFC, I truly believe that company would have been placed into administration by the ATO and some of the directors would have lost their houses.

Just another reason why a cashflow forecast can change your business or your life.

Now if you want some implement a cashflow forecast that may potentially change your business or your life, contact me below.

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Contact Wayne Wanders for your FREE Business Survival Session

To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you. In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face. And this session does not need to be face to face.

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

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Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au

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