Show me the Money in 30 Days

October 14th, 2012 by

Running a start-up is very rewarding but has many challenges; one of the major challenges is managing cash flow.  What I mean by this is I love working in a start-up, customer relationship management and all the activities related to growing POIM Consulting group, but I did not like my financial situation.  I wanted to make more money and improve cash flow.

This put me in a quandary, I loved my job but it was not meeting my financial requirements.  I was not sure what I needed to do until I came across a slide by Deepak Chopra called “total well-being” – the slide separates well-being into 5 areas including separating your job from financial well-being.

Prior to seeing the slide I had always taken the approach that your job and financial well-being were the same thing. As a result of seeing this information from Chopra, I separated the way that I thought about POIM consulting from my financial situation.

When I looked at me job I was very happy; when I looked at my financial situation I identified that I needed to improve my 30 cash position, I needed to have accurate visibility into my 90 day cash position, and I needed to know that I was doing the correct things to continue to improve my cash flow over a longer period of time.

The answer for me was to build 3 buckets to measure my daily work activity as it relates to improved cash flow.

·       30 Day Bucket – Are my activities going to generate revenue in the next 30 days?  What projects can I complete and bill the customer within 30 days?  What opportunities do I have in the funnel that will close in 30 days allowing me to invoice for a deposit?

·       90 Day Bucket – Are my activities going to generate revenue in the next 90 days? What projects can I complete and bill the customer within 90 days?  What opportunities do I have in the funnel that will close in 90 days allowing me to invoice for a deposit?  What marketing activities I am doing to generate cash is 90 days?

·       Greater than 90 Days – Are my activities going to generate revenue greater than 90 days?

I know use my calendar to track my daily activity and log my completed tasks and put them in a 30, 90 or greater bucket.   I make sure that I have a balance with my work related activities resulting in an improved cash position.

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