On Wednesday, May 12th during #StartupChats, we talked about Making Cashflow Work For You with Scotiabank.
We were joined by cash flow and finance experts;
Nikki Bettinelli, Owner of NB Media
Tracey Bissett, Founder of Bissett Financial Fitness Inc.
Jason Charlebois, Senior VP of Small Business Banking
First, we defined cash flow;
A1. Money coming, money going out and the timing that it happens (think about what comes in and out of bank account – not sales and expenses). Might need to increase to support growth, slowdowns of revenue, acquire assets, shareholder withdrawals etc… @Scotiabank #StartupChats
— Tracey Bissett (she/her/hers) (@bissettfinfit) May 12, 2021
A1: Cash flow is the money that is flowing in and out of a business. Money going out covers expenses such as paying employees, purchasing inventory, making investments and more. The money coming in is from customers paying for your products and services. #StartupChats https://t.co/70NscL8Va3
— Scotiabank (@scotiabank) May 12, 2021
A1. Cash flow is money coming into your business and money going out to cover business expenses. It’s so vital to keep more of it in your business. Most startups die prematurely because they simply run out of money. #startupchats
— Joy A. Adams 🇨🇦 (@startupbenefits) May 12, 2021
And discussed things like cash flow projections;
A4) It’s an analysis of how much you have coming in and going out month to month or quarter to quarter. Knowing your numbers is important so you can determine when you need to make more or spend less. #StartUpChats
— Nikki B | Digital Marketer (@nikkbetts) May 12, 2021
A4 Cash flow projections are a breakdown of money that is expected to come in and out of the business over a period of time. They enable you to plan ahead, make better decisions and avoid a cash flow crisis.#StartupChats
— Matt Elton (@fintech_matt) May 12, 2021
A4 This is when you run scenarios for what you THINK you’ll bring in & what you may have to expend. Often, you run a few scenarios to see which one will work best for you, for your investment choices & plans. @Scotiabank #StartupChats
— Cydney Mar 🌸Fun Product Development Strategist🌸 (@CydneyMar) May 12, 2021
And how business owners can optimize cash flow;
A7: Depending on your business, plan to review your finances consistently, whether it’s weekly or monthly. As well, keep bookkeeping up-to-date as it helps to provide a snapshot of your budget and ensures your projections continue to match up. #startupchats https://t.co/G0obIkMll8
— Scotiabank (@scotiabank) May 12, 2021
A7. Review frequently, especially if you are scaling or launching a new product or service. #startupchats
— Joy A. Adams 🇨🇦 (@startupbenefits) May 12, 2021
A7) I am constantly reviewing my finances! Anytime I gain/lose a client, I ensure I forecast that over the next couple months so I can determine how fast I need to regain that income. #StartUpChats
— Nikki B | Digital Marketer (@nikkbetts) May 12, 2021
If you want to see all of the topics we covered during this chat, you can see the whole transcript here.