When Craig started his engineering firm, it was just him and Angie. Three years later, there were thirty people working for him. Craig describes himself as “an entrepreneur with an engineering degree” – it is his vision and salesmanship that has sparked the firm’s growth. With that growth has come the need to make decisions based on more data than what he can find in his hip pocket. He needed a clear view of the how money affected the path of his growth.
“I was used to making decisions about hiring and equipment purchases and marketing based on my ‘feel’ for how our cash was flowing. I’m used to functioning that way, but it did make me anxious, even though I was always pretty good at guessing right.
Then I started using a budget and cash flow projection tool. It was hard at first, and I really wanted to hand it off to someone else – anyone else! It’s a little embarrassing that it took me two years to really get the hang of it. I’m so glad my controller was patient!
The best thing is the freedom I feel!
This year, I did the projections and brought them to our annual planning meeting. We were able to use them to test our ideas against financial reality and do ‘what-ifs’ about market changes and hiring. Our controller feels like she has guidance and support and isn’t always having to be the bad guy when we say we need something. I feel in control of the growth, and, although I’m submitting to a discipline that I used to hate, well, did I mention the freedom from worry?”
The tool Craig used is available here.
Get with your controller or bookkeeper to help you fill in the numbers, then make a copy and use it to play what if about your growth plans. Many a company has strangled over cash flow even when highly profitable. Don’t let that happen to you!
Want expert guidance and advice as your business grows? Contact me for a free 90-minute consultation.
