Aired 2 weeks ago 4:35

Mapping Out Cash Flow

Hither? I'm eric. I'm Kevin join us on our journey to building a one hundred million dollar company. Back in the day when we were doing websites and custom software was all project based or by the hour. And I remember one time one of our CPA's longtime ago private, well, I say a long time ago probably about a year and a half ago. Maybe two years ago asked us. Hey house next quarter shaping up and our answer was we have no fricken idea. We have no idea how much we're going to do in revenue next quarter or next year or even next month. Frankly, because we don't know where these products are coming from. We don't know where the income coming from. We just get projects we do the work. We finished the project dies get another project. We were doing is. We were replacing one project with another, and we got really lucky for a long time where when one project ended just magically another project would appear, and we were maintaining for the most part, but we had no clue as to how to project out what was going to happen because we just didn't know where the money was going to come from. Well, fast forward, and we have switched from project in early work to one hundred percent recurring revenue we actually don't have the mechanism to Bill or even track by the hour anymore. It has to be recurring revenue everything that we do is a retainer based of work. Which is just fantastic. Now going back to the question. How are you going to do next month next quarter next year since recurring revenue and our expenses for the most part are recurring? We can actually start to project out how the finances will look in the next month. Or even the next quarter. So what we did is QuickBooks has a way of doing this. But we didn't like the way that it reported it, and we felt disconnected from the numbers as so what we did is we broke open a Google sheet, and we literally created every single expense that we expected to come up in the next month based on the bills that we know are recurring bills or the bills that were sitting on my desk, or my inbox. And then we also projected out the income that we were going to receive based on when payments typically come in to the office, and we sorted in. Chronological order all the journal entries is what they really are. Right. The positives and the negatives. And then we could chart out. How cash flow is going to change over the next month? So now at this point, we can literally project out the next month and every single month towards the end of the month. Cotonou I get together. And it used to take an hour and a half to do this doubt. Only takes about fifteen twenty minutes. But we literally right out all of those entries, and then we graph emperor checked out the low points and the high points when it comes to balances. And our counts it has been fundamentally a game changer for us to be able to project out where we're going to be the cool thing is is that we can see where the low points are. Right. So when we get low in our Bank account, we know that there's a potential risks there. Now, it's not cool that were low on a balance, but is cool that I know now three weeks from now, we're gonna have a cash crunch. And I started thinking about what I need to do to avoid that or to mitigated or to soften it three weeks in advance. I know that there's going to be a cash crunch. So we set up lines of credit we've done all these different things. We've got these tools at our disposal. Now, budgeting projecting lines of credits. To avoid running out of money. Right. And it's not that we're not profitable. We are profitable is a casual issue, but because of recurring revenue we can project it, and we can mitigate it. And we can resolve it amazing. If you're not on recurring revenue right now, I'm telling you it is the game changer that I've been searching for for all these years. And I'm so glad that we found found it. Thank you for listening. I hope you heard something you can implement in your business right away. Finance online at journey to one hundred million dot com.

Journey to $100 Million

Aired 3 weeks ago 4:25

EXPANDING TO 7 DAYS A WEEK

Hey there. I'm eric. I'm Kevin join us on our journey to building a one hundred million dollar company. I mentioned in the last episode that we are going to be pivoting from calling this. The marketers anonymous podcast and flash briefing to journey to one hundred million dollars. That transition is in progress. It will take about a week maybe two to kind of flesh everything out. But one of the things that I've come to realize very recently is that when we first started doing this podcast and ever since this has been going out. It's been a daily briefing, but I did that with air flights. I know you can't hear the air close. But I I did it to self and the reason that air quoted daily is because it's really technically Monday through Friday. We have not been putting out content on Saturday and Sunday. I just got back from a lexicon, which is a conference all about voice assistance, and voice technologies. And maybe a third of the people that were there were creators people that had their own podcasts or flash briefings. So I had a chance really for the first time ever to interact with people that are also creating audio content. Like, I am right now and for people that are in the flash briefing game. They are doing it on a daily basis seven days a week. We're not I didn't do that at first because frankly, I was afraid or narrowly frayed I should say I was concerned about being able to produce enough content. That goes back to even picking the topic for this flash briefing daily podcasts at first it was going to be interview style. But I realized that was going to be I dunno. I personally I'm getting kind of sick of the interview style, you see it a lot and at some points, you know, with these series. You just realize they're just interviewing kind of anybody that comes along. I don't want to do an interview series. At least I don't wanna do interviews all the time. I don't wanna do tips and tricks because it's very low level. And I don't think people really care about that. I think they care about growing their business and just don't have a passion for that. I don't wanna do news because it's super timely, which means I have to record it that morning, and it's just going to be a problem. Long term. I can't dedicate every single morning to recording. I have to record an events. So the thing that I'm super passionate about his growing this business to a hundred million dollars. And so that's why picked that topic. Well, it turns out my business partner. Kevin daisy should be no surprise. Is is also very passionate about that. He is going to start recording episodes as well. So from now on you're going to hear the two of us, providing episodes one time, it'll be me one time it will be Kevin. So that we've got to people that are recording podcasts on the same topic for the same company. But what you're gonna find out bet is that we have slightly different approaches to the scene thing. We're a partnership. We're not identical twins, right? We have different ideas about how to address different situations. The good thing about a partnership is that hopefully, you're not you're actually not identical. There's a Ying and the Yang you balance each other out with Kevin I do very well. But now the Kevin's getting into the mix we're going to have more content. We're gonna go to seven days a week pretty excited about that. I'm interested to see what the Dalo numbers look like on the weekends. I suspect they'll be less than on Monday through Friday. But I also suspect they'll would be off by maybe. Fifteen to twenty five percent. So if we still capture seventy five percent of our audience on a Saturday and Sunday. Great, right. So it's a little bit of an experiment. I'm not too worried about it. Because like I said there's two of us now. So brace yourself for Kevin's episodes of show. They'll be awesome. But I'm also sure that in the beginning they won't be all that creep because it's as a little while to kind of ramp up and get comfortable just talking into thin air with a microphone cooked to your chest. So best of luck. Kevin. I'm confident you'll do it. Several one else brace yourself for Kevin. Thank you for listening. I hope you heard something you can implement in your business right away. Find us online at journey to one hundred million dot com.

Journey to $100 Million

Aired 2 weeks ago 4:37

Mapping Out Cash Flow

Hey there, I'm Eric. I'm Kevin join us on our journey to building a one hundred million dollar company. Doc in the day when we were doing websites and custom software was all project base or by the hour. And I remember one time one of our CPA's longtime ago private, well, I say a long time ago probably about a year and a half ago. Maybe two years ago asked us hate house next quarter shaping up and our answer was we have no freaking idea. We have no idea how much we're going to do in revenue next quarter or next year or even next month. Frankly, because we don't know where these projects are coming from. We don't know where the incomes coming from. We just get projects we do the work. We finished the project dies. We get another project. What we were doing is. We were replacing one project with another, and we got really lucky for a long time where when one project ended just magically another project would appear, and we were maintaining for the most part, but we had no clue as to how to project out what was going to happen because we. Just didn't know where the money was going to come from well fast forward, and we owe switched from project in early work to one hundred percent recurring revenue we actually don't have the mechanism to Bill or even track by the hour anymore. It has to be recurring revenue everything that we do is a retainer based of work. Which is just fantastic. Now going back to the question. How are you going to do next month next quarter next year since his recurring revenue and our expenses for the most part are recurring? We actually start to project out how the finances will look and then next month. Or even the next quarter. So what we did is QuickBooks has a way of doing this. But we didn't like the way that it reported it, and we felt disconnected from the numbers as so what we did is we broke open a Google sheet, and we literally created every single expense that we expected to come up in the next month based on the bills that we know are recurring bills or the bills that were sitting on my desk, or my inbox. And then we also projected out the income that we were going to receive based on when payments typically come in to the office, and we sorted in chronological order all of the journal entries is what they really are. Right. The positives and the negatives. And then we can chart out. How cash flow is going to change over the next month? So now at this point, we can literally project out the next month and every single month towards the end of the month. Cotonou gets together. And it used to take like an hour and a half to do this doubt. Only takes about fifteen twenty minutes. But we literally right out all of those entries, and then we graph and project out the low points and the high points when it comes to balances in our accounts, it has been fundamentally a game changer for us to be able to project out where we're going to be the cool thing is is that we can see where the low points are. Right. So when we get low in our Bank account, we know that there's a potential risk there. Now, it's not cool that we're low on a balance, but is cool that I know now three weeks from now, we're gonna have a cash crunch. And I started thinking about what I need to do to avoid that or to mitigated or to soften it three weeks in advance. I know that there's going to be a cash crunch. So we've set up lines of credit we've done all these different things. We've got these tools at our disposal. Now, budgeting projecting lines of credits. To avoid running out of money. Right. And it's not that we're not profitable. We are profitable is a casual issue, but because of recurring revenue we can project it, and we can mitigate it. And we can resolve it amazing. If you're not on recurring revenue right now, I'm telling you it is the game changer that I've been searching for for all these years. And I'm so glad that we found found it. Thank you for listening. I hope you heard something you can ferment in your business right away. Finest online at journey to one hundred million dot com.

Journey to $100 Million