Today, more than ever, I have watch businesses of all sizes, industries and locations buckle down to figure out what this new economy means to them, their business and their future cash flow.I've seen companies with millions of EBITDA disappear and entrepreneurs with a few hundred thousand in EBITDA explode with growth. Regardless of what end of the spectrum you are on, getting a handle on what cash is coming in and out the door is crucial. There is a way to get visibility into your cash that helps you get through this storm and also sets you up for success so you can "afford"​​​ to grow at the pace you want... and with the right kind of growth. My business partner Pat Hobby and I will be discussing how the most successful companies master their cash flow by building out forecasts and budgets that align with their strategic plans and revenue targets. ​We talk about the steps you need to do, how to be intentional, make a plan, and come out of this ahead by building a 13-week cash flow statement, revising your budget and forecast and then building a plan for long term value growth.

 

Some of the things we discuss in today’s episode –

How to balance today's storm with your future plans for the business

How to build a financial foundation that gives you visibility into your cash flow

The key components to a 13-week cash flow statement and why you need one

How to use a 13-week cash flow dashboard to work with your stakeholders

How to build an annual budget from the ground up

How to get visibility into your line of credit usage for the rest of 2020

What you can be doing to revise your sales forecast

How to combine your sales forecast with your budget to project your 2020 net income

How to avoid decisions that you will regret (like taking on too much business debt)

How to set yourself and the company up for value growth and potential acquisitions

How to project out your growth and what it is going to cost you (and where you'll get the money)

Where to find the Mastering Your Cash Flow Video Series and the new Intentional Growth™ Digital Course

Main takeaway

We want to help. I hope that the Mastering Your Cash Flow Digital Course can help get you where you need to be in order to get through this crazy time on top of your game and with a plan. Let’s build a plan to get a solid foundation for you and your business. You’ve got to get going and get intentional right now.

 

Quotes:

“There are very specific things that we can be doing because everybody’s balance sheets are shrinking right now.” - Ryan Tansom

“Get clear, get intentional, get growing.” - Ryan Tansom

“Don’t just look at topline revenue for the next two or three years. Don’t just blindly grow, blindly take out debt. There are 12 years of that. Quit doing it.” - Ryan Tansom

“When this passes--and this will pass--you want to be in a position where you can grow your business.” - Pat Hobby

“Getting some clarity on where I’m at today and how I get through the next quarter and the next year, in a way that sets me up for the futur

Today I talk with a guest that is back on the show, Ilan Jacobson (the founding partner and CEO of Firepower Capital, based in Canada). Ilan is colorful, straight-forward, intelligent, and brilliant entrepreneur with an amazing background in finance and geneology.

Ilan is on the ground floor and has lots of exposure to the M&A marketplace. At Firepower Capital, they have an M&A sell side advisory team does deal between $10M - $250M as well as an investment arm that deploys their our own capital in Canadian companies through venture, gap & bridge term debt, as well as private equity with deal sizes $1M - $20M (fun fact – they own one of the largest battle ax throwing companies ;-)

We cover some of the biggest questions up in the air right now: What will our new normal look like? How will consumer behavior and the business landscape change? What impact does the debt levels on consumers and business have on the recovery?

Our conversation was a blast and rich with insight about how the pandemic could impact the future of the economy, business valuations, private equity and more.

Some of the things we discuss in today’s episode –

What the new economic normal might look like

How and when things might bounce back

The high levels of debt and how that will impact the recovery

How the shutdown is impacting business and private equity

Changes in business valuations

Ways business might change post-COVID-19

How the CARES act and stimulus money will be deployed

How corporate incentives could / should change when companies receive the money

What industries are benefiting from the shifting of how business is getting done

Where are the potential opportunities and value in the marketplace

Ilan’s predictions for later this year and post-COVID-19

Where to find Ilan and about his new podcast, “The Dealmaker’s DNA”

 

Main takeaway

Make sure to pull from all of the resources available for you out there. That way you can start synthesizing information and start figuring out what your new norm is going to be. One of the resources you should check out is our Mastering Your Cashflow Mini-course. Also check out the digital course for our bootcamp.

 

Quotes:

“The pandemic threw a wrench in the system in a real hard way. But the lack of lubrication was being seen. The squeaks were being seen before this.” - Ilan Jacobson

“It’s really shown, in a very real way, the flaws in our system. But I honestly think those flaws existed prior to us seeing them.” - Ilan Jacobson

 “We are only as safe as the lowest common denominator. And I don’t trust the lowest common denominator.” - Ilan Jacobson

 “We are, actually, as an entire global population, learning new skills. Which is quite interesting.” - Ilan Jacobson

 “The commercial real estate market is going to be so different.” - Ryan Tansom

 “This is the best case study of supply versus demand economics. Like, if people don’t wake up and buy shit every day, there is no machine.” - Ryan Tansom

 

Resources:

Ilan Jacobson, LinkedIn

ARKONA Boot Camp

Reach out to me if you have questions about the boot camp!

Yo

The world is so chaotic right now. Amidst that chaos, a lot of companies are struggling to make ends meet. If you’re in that scenario or if you’re trying to prepare for that possible outcome, today’s episode is for you.

Jeff Sands (author of “Corporate Turnaround Artistry: Fix Any Business in 100 Days) is chatting with me today. We both commiserate over our expertise in this area, but we also talk about what we’ve learned through the process. Jeff’s love of business and being a turnaround consultant is in high demand in these worrisome times. He shares some of his secrets with us as well as some stories about his experiences in the field.

As the world has come to a stretching halt and revenues have shrunk dramatically, the need to manage your cash, build a short-term game plan and revise your long-term strategy is more important than ever.

No matter where you fall on the spectrum of the impact that COVID-19 has had on your company’s revenues, this episode is a must listen.  It will teach you what you can do to pull out of a nosedive, get your foundation in order and then capitalize on the opportunities that will inevitably present themselves.

What you will learn:

What it takes to turnaround a business that is out of money

How to generate cash, fast.

How to build alliances with your stakeholders during a turnaround

How to identify your cash conversion cycle

Typical vanity metrics that most entrepreneurs talk about

Why cash is a business oxygen and how to keep a business alive

How to build a 13-week cash flow statement

What should go into your cash flow forecast

How to plan for growth once you get out from your turnaround

How your mindset is your biggest asset during a turnaround

How to get out of the cross hairs of the bank and become the “A Student”

Ways to hit the accelerator once you have your financials in order

The Takeaway:

No matter where you fall on the spectrum of the impact that COVID-19 has had on your company’s revenues, this episode is a must listen. It will teach you what you can do to pull out of a nosedive, get your foundation in order and then capitalize on the opportunities that will inevitably present themselves.

We are in unprecedented times where revenues have dried up and cash is king, HOWEVER a plan is even better. Now is the time to get your foundation in order, make hard decisions and build a plan for when things "normalize". If you put the best practices in place you’ll be able to pull ahead of your competition and be the one ready to win the clients and even acquire the companies that were not able to sustain through the crisis. 

 

The reason I love this episode is it hits very close to my heart based on the experience I have I started at the family business during the 2009 crash and that year we lost well into the 6 figures. The next 5 years we spent every waking minute juggling cash while trying to keep the business alive. What took us almost 6 years to do could have b

This episode (also in video) breaks down the $350 Billion in relief funds for small businesses owners in the PPP and EDIL, who qualifies and how to access the money.

What will you learn in today’s episode –

The difference between the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EDIL)

The insights of a Top Tier Mid-West CPA and Business Advisory Firm

What’s going on in the market as of 2 days ago

Who qualifies for each the PPP and the EDIL

How to apply for both programs

How Bankers fit into the mix

The loan amounts available in each program and how it is calculated

How to deploy and where to use the loan proceeds

What loans are forgiven and how

The interest rates, terms and deferments in each program

Ways to access emergency grant money ASAP

Which loans are personally guaranteed and what is not

Options available for current SBA loans 

Main takeaway / Why I liked the episode –

There is a lot of money that is going to be deployed in the next two months and the sooner you can get your ducks in a row and submit your application (the right way with the right requests) the sooner you’ll be able to receive your funds.

We have the video available on our website along with a list of additional resources and links that we will do our best to update as things change and evolve.

Even though there is going to be unprecedented access to funds that does not mean you have the luxury to sit around and wait for them. Our suggestion for every business owner out there is to:

Gather your info and submit your application ASAP, then…

Build your 13-week cash flow statement

Revise your 2020 forecast the best you can

Have conversations with all your stakeholders

Lean on your closest advisors and

Start working on your strategic plan to get you out of this crisis and then capitalize on the opportunities that will inevitable arise when our new “norm” settles in

 Links, Resources and Downloads –

Watch the webinar of this podcast

Schedule a call with Arkonato discuss a 13-Week Cash Flow template and Action Plan 

Jim Stelten, LinkedIn

BerganKDV Website

BerganKDV Guide to the CARES Act, PPP and EDIL

US Chamber of Commerce Guide to the CARES Act, PPP and EDIL

SBA CARES, PPP and EDIL Loan Application Resources

Borrower Paycheck Protection Program Application 

PPP Paycheck Protection Program - Borrower Information Fact Sheet- 3.31.20

PPP Paycheck Protection Program -Overview-03.31.20

About the guest – As a Business Value Add Partner, Jim is responsible for building client relationships and solving client’s business challenges. At an early age, Jim worked in his dad’s retail business. His dad taught him to make a difference—even in a small way—for their customers and this has been Jim’s mantra ever since. He is tireless in his pursuit to make a difference for the clients he serves. Jim believes in always driving value beyond the assignment and providing an experience deserving of referral. This mindset has allowed Jim to grow an incredible network in the Twin Ci

In today’s episode I got to speak with Scott Shay who runs the 40th largest bank in the US and has also been through the 87’ stock market crash, .com bubble, 9/11, 2008 financial crisis and now the 2020 COVID-19 pandemic. 

 

I loved this episode because I was able to geek out about economics, the financial impact of our situation and what his thoughts are for what the future could hold. I was able to cover a lot of ground with someone who is at the ground floor of the economic impact that the pandemic is and will have on our country’s economy. 

There are two truths that keep our world going round,

The belief that the future will be better than the present and past 

People will leave their homes and go out and buy goods and services. 

We are currently living in a reality where these two truths are in major jeopardy. 

 

With the quarantines happening nationwide, American’s are not able to consume… therefore, leaving businesses without revenue and the profit to keep people employed who in turn can’t pay their bills, and so on. 

 

Roughly 70% of the US’s growth is based on the American consumer… if people don’t wake up and purchase goods or services, then the entire system is vulnerable to a collapse.

 

The country has tons of leverage (debt). Public companies, Small Businesses, Private Equity firms and American households have been borrowing from the future to fuel their needs. This equation works just fine when you have confidence in the future and people are consuming… until there is a bump in the road… 

 

What you will learn:

How Scott grew Signature bank from scratch to a publicly held company with 1400 employees and $50 Billion in assets

Scott’s thoughts on the economic after math of COVID-19

Why Scott decided to build the bank from scratch versus starting through acquisition

How to have conversations with different stakeholders (your bank, vendors and suppliers) while in a cash crunch

What could happen to business valuations going forward

Why we need to recalibrate the discount rate

The potential impact of a recession on Private Equity and Pension Funds

Why the 2020 recession is much different than 2008

What

In today’s episode I got to speak with Scott Shay who runs the 40th largest bank in the US and has also been through the 87’ stock market crash, .com bubble, 9/11, 2008 financial crisis and now the 2020 COVID-19 pandemic. 

 

I loved this episode because I was able to geek out about economics, the financial impact of our situation and what his thoughts are for what the future could hold. I was able to cover a lot of ground with someone who is at the ground floor of the economic impact that the pandemic is and will have on our country’s economy. 

There are two truths that keep our world going round,

The belief that the future will be better than the present and past 

People will leave their homes and go out and buy goods and services. 

We are currently living in a reality where these two truths are in major jeopardy. 

 

With the quarantines happening nationwide, American’s are not able to consume… therefore, leaving businesses without revenue and the profit to keep people employed who in turn can’t pay their bills, and so on. 

 

Roughly 70% of the US’s growth is based on the American consumer… if people don’t wake up and purchase goods or services, then the entire system is vulnerable to a collapse.

 

The country has tons of leverage (debt). Public companies, Small Businesses, Private Equity firms and American households have been borrowing from the future to fuel their needs. This equation works just fine when you have confidence in the future and people are consuming… until there is a bump in the road… 

 

What you will learn:

How Scott grew Signature bank from scratch to a publicly held company with 1400 employees and $50 Billion in assets

Scott’s thoughts on the economic after math of COVID-19

Why Scott decided to build the bank from scratch versus starting through acquisition

How to have conversations with different stakeholders (your bank, vendors and suppliers) while in a cash crunch

What could happen to business valuations going forward

Why we need to recalibrate the discount rate

The potential impact of a recession on Private Equity and Pension Funds

Why the 2020 recession is much different than 2008

What

Today on the podcast, I have Mike Frommelt the Founder and CEO of Keystone Search. Mike has been featured in Gino Wickman’s book Rocket Fuel because of his tenure helping companies hire their top-level executives and more importantly their replacement (this could be the title of Pres ident / GM / COO / or Visionary / Integrator as EOS refers to it).

If you have thought about what it would be like to replace yourself from the day to day (i.e. your role not your ownership) and don’t know where to start, then this episode is for you.

Whether you have a $1M business or $100M business and your goal is more freedom from the day to day, or are looking for ways to decouple yourself for an exit years down the road, it’s a HUGE decision to find your successor.

If done wrong, all the anxieties about the subject and horror stories you play in your head could come true BUT if you do it right and take the time to learn what you need to do BEFORE you make any decisions then true magic can happen. Not only for your personal life BUT also for the business.

You will have a more valuable company that gives you the freedom and time to think, plan your long-term strategies while only working in the parts of the business that give you energy.

One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head.

What you will learn:

 Where to start the journey when you are ready to replacement for your day to day role

How to determine whether you have your replacement internally or if you need to find someone from outside the company

How to separate your ownership role from your day to day working role

How to figure out how much visionary vs integrator your replacement needs to have

What qualities a president of a company should have

What the resume should look like of someone t

The opportunity cost of replacing your role

How to pay a president and different compensation structures you should think about

The process to find, court and onboard a president

How to discuss hiring your replacement with your executive team

Quotes:

“The first place that I like to start is making sure that I understand and they understand what it is that they’re really doing in the business.” - Mike Frommelt

“You want to incentify [the leadership team] to grow the business while you’re doing what you want to do, whether you’re becoming the chairman of the board or you’re on a beach somewhere.” – Mike Frommelt  

“This is not about putting yourself out to pasture.” – Ryan Tansom

 “I think that if you have too much operational and you leave the magic of the visionary aside, things can implode, which I think a lot of people will also see.” – Ryan Tansom

“Choices, choices, choices equals freedom, freedom, freedom.” - Ryan Tansom

The Takeaway:

One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head (this doesn’t mean you have to go out to pastor or become irrelevant, just that you have transferred your knowledge and the company’s reliance on you so you can have the freedom to work in the areas of the business that give you energy AND have more options to do what you want with the bus

Today on the podcast, I have Mike Frommelt the Founder and CEO of Keystone Search. Mike has been featured in Gino Wickman’s book Rocket Fuel because of his tenure helping companies hire their top-level executives and more importantly their replacement (this could be the title of Pres ident / GM / COO / or Visionary / Integrator as EOS refers to it).

If you have thought about what it would be like to replace yourself from the day to day (i.e. your role not your ownership) and don’t know where to start, then this episode is for you.

Whether you have a $1M business or $100M business and your goal is more freedom from the day to day, or are looking for ways to decouple yourself for an exit years down the road, it’s a HUGE decision to find your successor.

If done wrong, all the anxieties about the subject and horror stories you play in your head could come true BUT if you do it right and take the time to learn what you need to do BEFORE you make any decisions then true magic can happen. Not only for your personal life BUT also for the business.

You will have a more valuable company that gives you the freedom and time to think, plan your long-term strategies while only working in the parts of the business that give you energy.

One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head.

What you will learn:

 Where to start the journey when you are ready to replacement for your day to day role

How to determine whether you have your replacement internally or if you need to find someone from outside the company

How to separate your ownership role from your day to day working role

How to figure out how much visionary vs integrator your replacement needs to have

What qualities a president of a company should have

What the resume should look like of someone t

The opportunity cost of replacing your role

How to pay a president and different compensation structures you should think about

The process to find, court and onboard a president

How to discuss hiring your replacement with your executive team

Quotes:

“The first place that I like to start is making sure that I understand and they understand what it is that they’re really doing in the business.” - Mike Frommelt

“You want to incentify [the leadership team] to grow the business while you’re doing what you want to do, whether you’re becoming the chairman of the board or you’re on a beach somewhere.” – Mike Frommelt  

“This is not about putting yourself out to pasture.” – Ryan Tansom

 “I think that if you have too much operational and you leave the magic of the visionary aside, things can implode, which I think a lot of people will also see.” – Ryan Tansom

“Choices, choices, choices equals freedom, freedom, freedom.” - Ryan Tansom

The Takeaway:

One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head (this doesn’t mean you have to go out to pastor or become irrelevant, just that you have transferred your knowledge and the company’s reliance on you so you can have the freedom to work in the areas of the business that give you energy AND have more options to do what you want with the bus

Entrepreneur and family office investor Andy Billman faced death head on when he was talking to the surgeon who was removing a tumor from his skull… while he was wide awake!

After a lifetime of doing deals (at one point he did 14+ acquisitions in the course of 5 years) Andy was faced with devastating news that he had brain cancer.

Since his brain surgery, Andy has made it his life’s mission to help entrepreneurs understand how to take their obstacles, recalibrate their minds, and use their businesses and their lives to help change others.

On the show he talks about the ups and downs of his career (buying a company, getting sued, going bankrupt, acquiring 14 companies in 5 years, and how he ended up at a family office) and why having a good perspective on life is the one thing that can make the whole ride worth it.  

 

What is the first thing you would do with your business if you were faced with horrible news? Would you try to sell everything tomorrow or would use that news to put into action all the things in your business and life that you’d been holding out on?

Andy shares his experience of facing death, so we can understand the importance of reflecting on what’s important for you, your life, and your business.

Life is finite and the best thing you can do is come to grips with that. Once you do, you will have a lens to view the world with that helps you prioritize what’s really important. It can help you transform your business and life while allowing you to enjoy the ride.

What you will learn:

Why leaning into challenges can be one of the greatest gift’s life can give you

Lessons learned from over 12+ acquisitions on the buy side

The most important question you can ask about a potential company you want to buy

How Andy changed his perspective on life and business after brain surgery

How Andy is using his diagnosis to enjoy M&A and his business ventures

What it was like to buy into a company and have it go bankrupt while getting sued

What Andy looks for in a good acquisition

How to be optimistic on deals and why you need to surround yourself with detailed and cautious people

What Andy refers to as the “bull shit meter”

The power of telling the truth and being transparent

The difference between short term and “patient” capital

Why the purchase price should be the table stakes and how to focus on the intangibles in the terms and conditions

Questions to ask yourself if you didn’t have the business as part of your life

Quotes:

“I just kinda smiled and said, ‘Well, my mom always told me I was special.’” - Andy, about having rare brain cancer.

“I share my story with complete strangers because I hope that I can make an impact in whatever they are going through.” - Andy

“Life is finite. People are also people. How do we integrate business and humans and the long game of life into one journey that we enjoy and that makes and impact on others.” - Ryan

The Takeaway:

Life is finite and you have the ability to realize that. One of the most useful life tips I’ve incorporated into my life was from Benjamin Franklin (when I read his biography). He explained that ⅓ of his thoughts were on the fact that life is finite in order to calibrate the things that he dealt with.

Resources:

Andy Billman, LinkedIn

Entrepreneur and family office investor Andy Billman faced death head on when he was talking to the surgeon who was removing a tumor from his skull… while he was wide awake!

After a lifetime of doing deals (at one point he did 14+ acquisitions in the course of 5 years) Andy was faced with devastating news that he had brain cancer.

Since his brain surgery, Andy has made it his life’s mission to help entrepreneurs understand how to take their obstacles, recalibrate their minds, and use their businesses and their lives to help change others.

On the show he talks about the ups and downs of his career (buying a company, getting sued, going bankrupt, acquiring 14 companies in 5 years, and how he ended up at a family office) and why having a good perspective on life is the one thing that can make the whole ride worth it.  

 

What is the first thing you would do with your business if you were faced with horrible news? Would you try to sell everything tomorrow or would use that news to put into action all the things in your business and life that you’d been holding out on?

Andy shares his experience of facing death, so we can understand the importance of reflecting on what’s important for you, your life, and your business.

Life is finite and the best thing you can do is come to grips with that. Once you do, you will have a lens to view the world with that helps you prioritize what’s really important. It can help you transform your business and life while allowing you to enjoy the ride.

What you will learn:

Why leaning into challenges can be one of the greatest gift’s life can give you

Lessons learned from over 12+ acquisitions on the buy side

The most important question you can ask about a potential company you want to buy

How Andy changed his perspective on life and business after brain surgery

How Andy is using his diagnosis to enjoy M&A and his business ventures

What it was like to buy into a company and have it go bankrupt while getting sued

What Andy looks for in a good acquisition

How to be optimistic on deals and why you need to surround yourself with detailed and cautious people

What Andy refers to as the “bull shit meter”

The power of telling the truth and being transparent

The difference between short term and “patient” capital

Why the purchase price should be the table stakes and how to focus on the intangibles in the terms and conditions

Questions to ask yourself if you didn’t have the business as part of your life

Quotes:

“I just kinda smiled and said, ‘Well, my mom always told me I was special.’” - Andy, about having rare brain cancer.

“I share my story with complete strangers because I hope that I can make an impact in whatever they are going through.” - Andy

“Life is finite. People are also people. How do we integrate business and humans and the long game of life into one journey that we enjoy and that makes and impact on others.” - Ryan

The Takeaway:

Life is finite and you have the ability to realize that. One of the most useful life tips I’ve incorporated into my life was from Benjamin Franklin (when I read his biography). He explained that ⅓ of his thoughts were on the fact that life is finite in order to calibrate the things that he dealt with.

Resources:

Andy Billman, LinkedIn