The language of business is accounting
Net profit and cash are not related in any way whatsoever
Operating cash is more critical than investing cash and financing cash
Do you get a monthly Profit and Loss Statement for your business?
Do you get a monthly balance sheet for your business?
Do you get a monthly cash flow statement for your business?
Are you happy with your accountant?
My Bookkeeper, Financial Controller and Accountant are three separate individuals?
Do you have a clear, robust recruiting process for hiring your financial team?
Does your financial team educate you and bring potential problems to your attention?
Do you have clear Key Performance Indicators for your financial team so that you can tell if they are doing a good job?
Do you have a bank account specifically for operating expenses?
Do you have a bank account specifically for taxes?
Do you have a bank account specifically for provisioning profit?
Does anyone other than you have access to your profit account?
Do you set aside the cash for taxes owed at least twice per month?
Do you have a system to compare your monthly financial raw data to previous time periods?
Do you “common size” your financial data to compare with previous time periods?
Do you analyze the financial trends within your data on a regular basis?
Do you know how profitable each of your products/services are individually?
Have you seen a “best in class” financial analysis report to see the full potential profitability of your business?
Does your business have a current cash flow forecast for at least 13 weeks into the future?
Were you involved in the creation of your cash flow forecast?
Does your cash flow forecast show specifically where the money will come from and when it’s due to be received for at least the next 13 weeks?
Does your cash flow forecast show specifically where the money will go to and when it’s due to be spent for at least the next 13 weeks?
Do you know your customer acquisition cost?
Do you know the average lifetime value of a customer?
Do you know how much it costs to run your business per month (Overhead)?
Does your annual budget have a revenue breakdown for each product per month?
Does your annual budget predict how much gross profit and net profit you expect to make per month?
Borrowing money can create leverage for your business to grow faster
Banks are a more flexible option than investors to raise money
Borrowing money from a bank will raise your company valuation
Raising equity through an investor will raise your company’s valuation
Do you have an up to date business plan with a summary sheet and 2-3 pages of supporting evidence?