30 Day Success Planner – Day 5

Money may not buy you happiness but in business liquidity, or available cash, will buy you a whole lot of things and ensure your business’ longevity and growth.


There is a famous saying … “Turnover is vanity, profit is sanity, cash is king.”


And never a more true word has been spoken.


Many businesses go bust every year simply because they have no cash flow; that is to say they have no money in the bank to pay their immediate debts as they become due.


Sure, a business may have £30 million owed to them to be paid in 3 months time, of which £25 million of it is pure profit, but if they haven’t got the £100,000 in the bank they need to pay the rent now, they could still lose everything, even with such a large amount owed to them.


“Usable” money in the bank is a vital component of your business success.

A cash-flow forecast is a crucial financial management tool which helps you plan your cash flows to avoid a potential liquidity crisis. What this forecast shows you is how much money you expect to have coming in and going out of your account over the coming months and years. Here are the top 4 reasons why you benefit from carefully studying your cash flow analysis: