Leadership Powered by Common Sense Cash Flow: The Make-or-Break Factor Every Small Business Owner Must Master | Ep 421
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Sep 4, 2025 Cash flow is crucial for small business survival, affecting everything from timing income to expenses. The host explains a 13-week cash flow model to help owners forecast their finances. Major decisions, like buying equipment, hinge on effective cash flow management. Mixing personal and business finances poses legal risks, and taking owner distributions without caution can harm the business. Professional guidance in building cash flow forecasts is emphasized to avoid unpleasant surprises.
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Cash Flow Is Timing, Not Just Balance
- Cash flow is the timing match between money coming in and money going out.
- Managing that timing is the core skill that prevents payroll and rent crises.
Use A 13-Week Cash Flow Model
- Build a 13-week cash flow spreadsheet with weekly columns and line-item income and expenses.
- Carry forward net weekly balances to forecast shortages before they happen.
Slot Revenues And Expenses Weekly
- Plot predictable revenue (contracts, average daily sales) into the weeks they will arrive.
- Slot every recurring outflow (payroll, rent, debt service) into the week it hits.
