Third, understand your financial performance. Know exactly what to track, and keep an eye on your cash cushion especially. Reduced to its very simplest, try this. Create a spreadsheet called “Time to Starve.” Add up these things: Cash (what’s in the bank) Savings (set aside for a rainy day in a business account) AR (accounts receivable: billed to clients but still outstanding) WIP (work in progress: work completed but not yet billed) Sales (work that you’re >80% certain of landing) Update it every week and divide that total number by your typical monthly overhead expenses. That represents the
...more
