Thrive by Design

4. Optimise Your Cashflow: Stop the Feast or Famine Cycle


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We discuss the critical importance of understanding cash flow in business.  Many entrepreneurs mistakenly believe that acquiring more clients is the solution to their cash flow problems. Instead, we advocate for gaining clarity on how cash moves through a business and designing a cash rhythm that allows for proactive management. This shift in mindset can transform a business from a state of chaos and survival to one of calm and thriving.

  • (00:00) - Understanding the Feast or Famine Cycle
  • (01:19) - Why Cash Flow Chaos Happens
  • (02:55) - What “Optimising” Cash Flow Really Means
  • (04:03) - The 3 Levers to Smooth The Cycle
  • (06:03) - An Example - The Service Business Reality
  • (07:06) - Take Action - Get In The Drivers Seat

  • Takeaways
    • Cash flow can fluctuate dramatically in business.
    • Late payments and project delays can disrupt financial stability.
    • It's crucial to have a robust system for managing money.
    • Recognizing early signs of cash flow issues is key.
    • Practical steps can help smooth out financial chaos.
    • Business growth requires a solid financial foundation.
    • Upgrading systems can aid in better cash management.
    • Taking time off is important for business owners.
    • Financial control leads to confidence in business decisions.
    • Understanding expenses is vital for maintaining cash flow.

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    Thrive by DesignBy Karen Woller