Okay, it wasn’t today. It was a couple of months ago. But I have felt bad about it ever since until I got a call off him last week.
So what horrible, unthinkable thing had I done to my Client that caused me to lose sleep, and to feel so bad? I wrote him a cash flow forecast. Nothing too bad you would think, but then, you didn’t see the content of it. It sent me a funny shade and him an even whiter one.
Now one thing I have had drilled into me is that profit is vanity, turnover is insanity and cash flow is king. (Okay, perhaps I have overdosed on training courses of late!). But for so many trainers and coaches to say it there has to be some truth in it.
When was the last time you looked at your cash flow? Do you even have a cash flow? If not can I respectfully suggest that you give it a go.
What the cash flow showed my Client was that at the present time, if he carried on trading as he was, he had no future. It’s a harsh tool at times is a cash flow, but, he took it on the chin and took a good long look at his business. To be fair, since I started working with him earlier this year we have made many changes for the better, processes have been streamlined, credit control has been tightened, and we have evaluated what went wrong in the past and learned from it, putting in place measure to prevent a reoccurrence. His understanding of what his business is and where he wants it to go are much more defined and clearer. He is re-structuring and moving premises (the bits I lost sleep over) but he is now much more positive about where he is going. He is rebranding, becoming more focused on what his business actually offers; he has overhauled his product range and is coming up with some amazing new products to grow the business on.
Then last week I got a phone call. He has kept going with his cash flow that I created, made all the changes mentioned above, and can now see not just a pin prick of light at the end of the tunnel but he is nearly out the other side. It’s a great feeling when you are able to be part of something so positive. And, even better for me, although he has downsized quite dramatically, he still wants to keep working with me! Of course he does, he has taste!
So, take heed, monitor and act upon what your cash flow is telling you, don’t stick your head in the sand, and perhaps, like him, you can arise like a phoenix from the ashes, stronger and fitter and ready to push your business forward again.