Cashflow is a hot topic when it comes to the world of business, and we're here in our second week of CEO Chronicles to tackle it! When you are cashflow positive, how do you know when to spend it and what to spend it on? How should you monitor cashflow, and how often should you do cashflow statements? We help you answer these questions and so many more!

Cashflow, which we define for you as the balance of cash moving into and out of a business at any given time, is so important that, as we speculate today, not being significantly cashflow positive is very likely why so many businesses, especially small businesses, went under during the COVID-19 pandemic. Many businesses were running paycheck to paycheck and only had enough cashflow to cover a month or so once so much shut down due to the pandemic. We talk about planning your next five moves but being reasonable and prudent about it, how to know when to cut your losses and what you can do about it, how to increase your cashflow, and so much more hopefully helpful insight and information about cashflow!

Staying in positive cashflow is not easy, which is why even major corporations such as Netflix are sometimes in negative cashflow. That's why we hope that this insight is helpful to you if you're in business and that it gives you some things to think about. We appreciate you tuning in again and encourage you to reach out to us via the email address provided in the show notes if you have anything that you would like to share with us. We hope to see you next time!

 

Time Stamps

[1:18] – Michele has been thinking about cashflow.

[3:32] – Karamel asks important rhetorical questions about spending cashflow.

[4:14] – Michele speculates as to why some businesses went under during the COVID-19 pandemic.

[6:54] – Learn why Netflix wasn't worried when they were cashflow negative.

[8:23] – Michele discusses the book that she is currently reading, Your Next Five Moves.

[10:47] – Karamel stresses the importance of bookkeeping.

[12:33] – Michele points to a famous quote to demonstrate the difference between revenue, profit, and cash.

[14:35] – We discover what cashflow is and what the difference is between positive cashflow and negative cashflow.

[17:16] – Michele points out the difference between cash managing and cashflowing.

[19:54] – Michele gives an example of a form of cashflow.

[22:29] – We learn why we need to be prepared to cut spending where it's necessary.

[23:13] – We learn about net 90 vs. net 15.

[25:50] – Karamel emphasizes an important basic business principle.

[28:22] – Michele and Karamel call attention to a helpful book, The Entrepreneur Mind.

[30:05] – Learn why reading to and listening to resources is important when you're in business.

[31:44] – Discover how to contact Michele and Karamel.

 

Resources

CEO Chronicles – Website

Email us: [email protected]

CNBC - “Netflix will consider buybacks as it returns to positive cash flow after 2021”

Patrick Bet-David - Your Next Five Moves: Master the Art of Business Strategy

Kevin D. Johnson - The Entrepreneur Mind: 100 Essential Beliefs, Characteristics, and Habits of Elite Entrepreneurs

Forbes - Website