Starbucks discussed on The Art of Online Business
You're trying to figure out if you can afford a starbucks allante okay in so you say all right. I've ten dollars in my pocket. Do i have any more money coming into my pocket today. I'm gonna go look under the seat cushions and all those things. Nope no more money coming in today. What money's going out today other than this law tick well in order to get the lots. I gotta put seven dollars with gas in my car right or whatever. I've gotta buy some food or whatever it is and so you think about those required Expenses they're gonna come out and then you look to your left with and you say okay. I'm going to be left with four box. So can afford that seven dollar Probably not you just did a cash flow forecast right. It worked the same exact concept where to your business. How much money do you have at the beginning of the month. What are your projected. Money's coming in about what you're getting invoice but how much cash is going to be hitting your bank. What expenses the you know to be coming out in you. Subtract those numbers out in that leaves you with your cassidy end of the month and then you repeat that for the next two or three months in all of a sudden you have kaslo forecast. That's where i recommend people start is looking at least six weeks into the future with enhanced. That's thing one you get your books and order it. We feel confident. The bookstore thing to start looking at about six weeks into the future on your cash needs okay from there. I like to go to the piano. In those three metrics that i told you about earlier on the piano revenue moffit net profit in this is what i read. I recommend people do take a look at the last thirteen complete months. So if you're you know in the month of may for example you know. Last complete month was april. I would look at april of last year. Through april of this year for revenue. Gross profit in net profit in..