Perspectives

From The Co-Founders

rss

Strategic insights and commentary from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts


Back-of-the-envelope cash flow
"The envelope, please"

Here we are, in the first week of December, in this tumultuous pandemic year of 2020.

Maybe more than ever, you need to have a grip on your cash flow! What will you cash flow look like during December, January and February?

Since you must be able to make informed decisions about your business, every day, an up-to-date cash flow calculation is essential. Remember, profits are interesting, but it's cash flow that's significant!

Cash flow doesn't have to be fancy. In fact, what most owners need is just to have the basics on the back of an envelope. The savvy ones always have that with them.

But...it's not easy to find an envelope these days. 🙄

So, The ROI has built a basic Cash Flow Gadget to use instead, and put it online. For free. You'll love it.

  • It's Big Picture basic. Focused on the key totals each month: Cash coming IN, Cash Going OUT, and the DIFFERENCE.
  • It looks at what's coming next. Focused on the next 4 months (like a season). Or, you could use it to look at the next 4 weeks.
  • It does the math for you. Everything is built in. All you need to do is plug in a few numbers of likely sales and expenses. 

Then, the real power unfolds.

  • If you don't like how that first draft would turn out, you can consider some changes. Make your tweaks and adjustments. What would it take to get the outcome you want?
  • This is the power of playing "what if...?"  Our Cash Flow Gadget does all the number crunching for you (with no comments or raised eyebrows, by the way.) 

 

Why do we call it a "gadget"? 
We know. That is quite the understatement. And we also know that anyone could make their own version on a spreadsheet.

But...have you? That's what we thought. So we have.

  • Few retailers have the time or interest to spend on spreadsheets. Instead, you need to make decisions about your business! Your employees, vendors, customers, and families are depending on you!

 

That's why The ROI will keep providing these practical, retailer-friendly gadgets.* The more practical information you have, when you need it, without a lot of trouble, the better your decisions can be. 

And our Cash Flow Gadget is built for times like these. And retailers like that!

Be sure to make it your Gadget of the Month every month. 
 


* We also have plenty of more in-depth retail financial modeling tools. Go here for more info about those.



Comments are closed.