October 24, 2015

It’s in the numbers


There are very few blindsides.

More often, you know something’s wrong.

A feeling.

Maybe it’s the negative space of non information that should be there but isn’t, or the sense that too many things are drifting, or the idea that even the smoke and mirrors are becoming blurred.

The only thing to do? Act on your hunch.

Dig out the information, pin down the drift, blow away the smoke.

The place to start? In the numbers.

(Business owner to turnaround guy, “Our numbers aren’t up to date,” or, “We don’t have an accurate cash flow forecast.”)

Everything is in there somewhere – all you have to do is find it.

Start with the facts – What are you spending? What are you making? What is the delta?

Then the rationalisations … why, why, why?

With the numbers, there’s never a reason to look the other way.

Skippy Strategy: Rolling cash flow forecast, management accounts by week two of the following month. Discuss.