BABY STEPS - STEP 3 OF A 4 STEP ACTION PLAN FOR MANAGING CASH

"Gross revenue means nothing if, at the end of the day, you have no operating cash." ~ MIKE MICHALOWIZ

For a good twenty plus years, I managed cash daily, weekly, monthly and quarterly at the privately held companies I worked for.  Consistently working cash flow so we were prepared for anything.

Step three for managing cash is using a 52-week cash flow projections.

This is a 52 week spreadsheet that tracks cash receivables coming in and cash payables going out. Cash Receivables are listed at the top. You can create a variety of categories for cash coming in.  Examples, receivables from various areas of the business, coaching, products,, events, and seminars, etc.  Cash going out categories, inventory, then list your various vendors if that is how you want to track purchases. Commissions, payments to contractors, weekly or bi-weekly payroll, plus normal monthly expenses, rent, utilities, electricity, natural gas, phone, internet, water, lease payments, car payments.  The 52 week cash flow spreadsheet is a cash story book, it tells you where you have been, how you performed and the variances that have occurred, which will allow you to realign how you are managing cash.  At the end of the spread sheet it tells you if there is lots of cash left over for the following week, or not enough to cover you, so then you can plan to borrow or adjust what will go out.

You can purchase the weekly cash flow management tool to your right for $225, equal to $4.33 a week, which is equivalent to less than one Vente latte.

Why manage cash weekly? This is the path that provides knowledge and direction for your financial goals for your business and life. This is a tool used to see where you are and where you are heading at all times. Knowledge is power. Mapping out cash coming in and going out weekly, allows you to see and plan what is needed.

A question I am constantly asked - Why do I need to manage cash flow daily when I use QuickBooks.?

Great question - the answer - CASH is KING. Cash is worked daily, weekly, monthly, and quarterly.  Cash is the lifeblood of every business. If you don't manage the cash coming in from accounts receivable and going out, accounts payable you run the risk of putting yourself out of business.  When you don't manage sales and accounts receivable you run the risk of missing income. (See previous post ) If you are not managing your expenses. i.e. accounts payable you can run the risk of negative circumstances where you have to scramble.  The numbers are only information, with that information, you make choices and decisions how to move forward.

Business's fail with poor cash flow management, so why run the risk?

As I have shared in earlier posts, create that new muscle, a new habit and learn how to work your cash flow differently.  Cash happens right now, in this very moment when you receive a payment or are purchasing goods or services. Working cash daily and weekly forces you to look at and plan.  You are the CEO of your business and the CFO. Lead your finances as you lead your business.

Remember, CASH is KING, so you need to know where you are at all times.

Creating simple, easy baby step habits opens the door to new possibilities for you and your business.

Get in to action, invest in yourself and your business. Purchase the weekly cash flow management tool and get cracking on managing your cash. If you have any questions please leave below or e-mail me at d.rosenfelt@cfomadeeasy.com

Warmly -

Debbie Rosenfelt

Chief Heart Officer

PURPOSE IS A GUIDING LIGHT . . . . .

"A #2 pencil and a dream can take you anywhere." ~ Joyce Myers

I am an avid reader of the Science of Mind magazine. Each message speaks to my heart and soul. Below is one daily reading I want to share with you.

Are you, YES YOU, moving forward with discovering your purpose?  Is your heart and soul nudging you?  Whatever that looks like for you.
Just a quiet little reminder. Enjoy!

Purpose

Sometimes, it is difficult to figure out purpose.  Too often, friends are willing to tell you what they think your purpose is, especially when it serves them. I have found something interesting about purpose: all I need to do is decide what my purpose is and be 180 degrees away from it. Once you set an intention to find your purpose, however, the universe will conspire to guide you. The only thing you can do wrong is to do nothing.

Purpose is a guiding light. You must not forget your purpose, but don't allow your purpose to tether you. Choose a purpose, and don't be attached to having it be the right one. Choose nothing, and the universe knows you are not yet willing to play. (SOM, August 4, 2012)

So, are you playing? or are you not yet willing to play? Share your passion, your purpose below.  . GET IT OUT!.  . Scream it to the world. .  we are waiting to hear your voice. Your soul is waiting for you to play.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

ENTREPRENEURS USE LOGIC & MAGIC

Each morning I have a ritual of caring for me . . take my vitamins, recite a gratitude prayer from the Four Agreements, go to the gym and work out with my trainer or without, come home feed the cats, grab a bite to eat, mediate and read a few inspiring words to support my day.

Below is Monday's reading from Science of Mind and as I read I thought of us . . Entrepreneurs

The mind can calculate, but the spirit yearns,

and the heart knows what the heart knows.

Stephen King

Since we cannot contract the Absolute,

we shall have to expand the relative.

The Science of Mind, page 405

Logic and magic: life is equal parts of either. Their order is reversible.

Sometimes, we cobble together some scheme using our logical

and logistical faculties, later to realize, when our clever thinking will

take us no further, “This is going to take a miracle.” Other times,

we’re thunderstruck by a knowing in the heart, and then have to

start framing out all the practical details. We do not have two separate

mental compartments for logic and magic; they’re more like

two programs in the same computer—one that analyzes data, and

the other that converts that data into sounds, colors, and sensations

to dazzle the senses. We would not be a whole self without both.

Proably, we have a bias toward one way of operating or the

other, so our learning comes in the form of trusting that both our

logical and magical worldviews will justify themselves. The heart

does what it does, and it may take a while for the head to catch up.

The head sets a direction, and it may then take a while for the heart

to buy into it. When they operate smoothly in tandem, we hunker

down, do the math, and then reach into seemingly empty space to

draw in some quality or ingredient that completes the picture. To

balance these energies in our lives, we need only trust that we are

already doing so. SOM June 11, 2012

We have our dreams and desires which can be magical and then, there is logic as well . .

It just so happens at this time Chase bank and Living Social are sponsoring a grant pool of $3 million dollars to be shared among 12 small businesses that are chosen by a panel. The twelve will each receive $250k to grow and expand their business.  An amazing opportunity, isn't it? Any business may complete and submit the application then find 250 people to vote for their business.  It is a gateway to make sure those who are serious about the opportunity to earn their chance.

I applied for the gym, SNAP Fitness in Edmonds, WA last Sunday, June 10th and I have been vying for votes, via FaceBook, Twitter, asking family, friends, members of the gym and business colleagues for votes.  This is an experience of dedication and commitment, supporting other entrepreneurs by sharing votes with each other, creating conversations of support and camaraderie. People having faith, voting before they receive a vote, others saying, I will vote for you only if you vote for me.  I just vote away and give so everyone has a chance to receive a shot of 250 votes. Know the 250 votes, only give eligibility, there is no guarantee. this is where the magic will come in for the fortunate 12. Yet look at the community this $3 million grant has created.  Entrepreneurs, very open and loving to support each other with an opportunity that can feel magical.

Entrepreneurs naturally hold the space of magic, listening to our intuition, listening to a sense or feeling inside that says how can I not do this and then logic what do I need to do.

The 12 entrepreneurs who receive the grant will be elated, excited and will need to logically plan out how to best utilize the money for their business if they have not done so already.  There was a question in the application that asked, "What will you do with the money."

As your Chief Heart Officer, I encourage every entrepreneur to commit to creating a solid organized financial foundation, to track the investment and how it is utilized. 

Note: a 1099 will be issued to the grant winners by Chase bank for the $250k, and income tax will be paid on the net profits for that year.  Best of luck to every business owner and entrepreneur. Make sure you are prepared with an action plan and strategy of how you will use the money.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

PS - Please vote for SNAP Fitness in Edmonds, WA at Mission Small Business and all other businesses that you would like to support with votes.

Friday's Story to Inspire - Making A Difference

Today's story speaks to how a young boy took a small step, a little idea that served his country. This idea of his reflects commitment, dedication and love and purpose.

As you read this story, I wonder how does this story speaks to you.  I wander if you feel it in your heart that inspires you to take a step forward in serving purpose.

Enjoy Friday's story.  

Man grows 1,360-acre forest in India...by himself

A man in India single-handedly planted an entire forest, proving that one person really can make a large difference.

You always hear that one person can make a large difference in the world. Today, we've got a story that proves that saying.

When he was a teenager in Northern India's Assam region about 30 years ago, Jadav "Molai" Payeng began planting seeds in a sandbar near his birthplace. A few years later, he moved into the area and turned the seed-planting and tree-nurturing into his life's work, planting seeds and helping them grow over a wide area that was initially left for desolate.

In the past 30 years, his seed-planting endeavors have resulted in a massive, 1,360-acre jungle in Assam, a forest ecosystem that has left an incredible mark on the Indian landscape and stands as a testament to Payeng's dedication.

Initially, the forest department told Payeng that trees could not grow in that area. He was not dissuaded; instead he dedicated himself to the task of nurturing the forest, and his dedication has produced results. The Molai woods, in addition to being covered with lush greenery, is now home to a whole host of creatures big and small, including birds, deers, rhinos, tigers, and elephants.

Jadav "Molai" Payeng is a hero to those animals, to the ecosystem in the area, and to conservationists across India. But he is also a hero to us, people living oceans away who don't necessarily work in forestry or in the environment industry. Payeng is a hero because he has proven that with commitment, blood, sweat, knowledge, and dedication to making a difference, one person can truly make a difference, and a large difference, on the world.

It's easy to discount the impact that we can have on the people and places around us. It's easy to feel insignificant when faced with the enormity of the issues that surround us. But it's important to remember that our actions, no matter how small they may be, make a difference. Whether it's bringing a smile to someone's day or revitalizing a forest ecosystem, the little acts of kindness and good have enormous impact.

Our small actions may not necessarily lead to a forest and safe haven for animals, but they have the potential to grow and flourish all the same.

Sameer Vasta
Writer and Blogger

To share with you my purpose . . I LOVE my work . . I love working with CEO's, entrepreneurs and business owners.  Did you know that you are all one in the same? J You just don't see it.  I do and I am fascinated to hear each person's story of how each person started their business.

I have worked with many large multi-million dollar businesses as their Controller and CFO.  In 2007 I started my business to share my knowledge with entrepreneurs so they too can have their own CFO (Chief Financial Officer).  Yes t a CFO is ust a title . . however there is vast knowledge in knowing and understanding business finances.

How to manage cash flow, in Great times and very tough down times.  How to grow your business by creating revenue projections so you can see your dreams through numbers.

Revenue projections serve many purposes, it allows you to project and see when you offer is profitable, it allows you to see if you are charging the right price, it allows you to see what revenue would look like with increasing your price.  You are able to calculate "how many hours do I need to spend on generating this revenue.  Where there is only 24 hours in a day and you projected an unrealistic # of hours (units) in this case that you cannot fulfill . . how are you going to make it work?

I see so many AHHA's business owners have when they take the leap with revenue projections.

How are you managing your cash?  You're not?  WHY? This is so critical for every single business.  I DON"T CARE that you are a small business . . YOU need to know this . . it is critical.  It is about training your mind and beliefs in you.  When your business grows to a millon $, and your not tracking your cash . . how do you expect yourself to get caught up in learning when you are so busy running a million dollar business?

Here is an inquiry - if you had 30 minutes to ask me 3 critical, valuable questions that would support you with your business, what would you ask? 

Here is your opportunity.  Leave your questions below, or e-mail me at d.rosenfelt@cfomadeeasy.com or schedule a 30 minute complimentary finance strategy call.  I promise you will be heard.

My purpose with CFO Made Easy. . cultivate attention and awareness around business finances with an open heart and non-judgmental approach.  

Warmly -

Debbie Rosenfelt

Chief Heart Officer

Video - Debbie Sharing a Few Thoughts Job vs Entrepreneurship

The last three days I was at a conference / workshop with Kyle Cease in Universal City, CA.  Transformative . . seriously transformative.  Why . . he spoke to and demonstrated in each moment, during those three days living life in the flow and letting go of "shit", such as fear, frustration, overwhelm.  The time spent was hilarious and has a heart hitting impact.

"Yeah, give me a break, how can anyone do that" . .I hear fear talking . . . I DON'T CARE . . . it is possible  . . I just practice everyday . . it''s called going with the flow of life . .going with what shows up.

Hopping on a surf board . . paddling out to the wave and then . . the wave catches me on the board and I am riding the wave of life . . . trusting and allowing what shows up is exactly what I need in that moment and going with it . . I did that this weekend . . and life just flowed.

I also did it last fall going to an event in Yosemite, and volunteered to pick up 5 strangers all throughout the San Francisco Bay area and everything just flowed with ease . . I was in action and I listened to my intuition . . ideas came up in my head and I checked it out . . I knew when action flowed . . I was on the right path . . those 5 strangers are now life friends.

So this morning as I was working out at the gym, I started thinking. . why is it so easy for me to get a "job" versus making it hard to be an entrepreneur. I am really good at "getting a job" talking one on one and making a difference in 1 CEO's life with his/her company.  . for a steady weekly or bi-weekly paycheck.  Yet my passion is to work with hundreds and thousands of entrepreneurs making a difference for them and their businesse. 

I see and feel my passion and I feel it in my heart, I am on the right wave . . working with business owners and finances is so needed . . I love making a difference and seeing the impact in people's eyes . . there is something deep inside that is calling me.  .

So why do I make it hard creating an income as an entrepreneur.  Why do I struggle with making a difference and being paid for it directly.  Do any of you have that same thought?

I recorded my thoughts on a video this morning after I worked out. This last weekend I made a commitment to Kyle Cease and the group I would Kylego for the next 90 days and record it on video. If I do not follow through the pain point is I would donate $10k to the NRA.  Why the "NRA" because I despise guns.  My son committed suicide in December 2008 with a gun. (yes I get it that was his choice, this is NOT a place for a gun debate)

I am on day two. . and this short clip is just something I wanted to share as there may be a few of you that have the same thought playing in your head.  

What does this have to do with finances . . . this has to do with commitment to invest in self, and business . I process my deeper thoughts to see the gift, to help me grow, transform and move forward in action. See, I have this deep desire to have an impact and make a difference in entrepreneurs and business owners lives.  I know YOU too, want to make a difference in peoples lives. 

How do you transform and move forward in action? I would love to hear you share how you support yourself with growth and transformation for you and your business.

Enjoy!

Warmly -

Debbie Rosenfelt

Chief Heart Officer

FINANCE GYM 101

I have this morning ritual that supports me for my day.  I quietly get up at 4:45am, put my workout clothes on, brush my teeth, take my daily vitamins with "Fired up", (it's an orange flavored powder with vitamin B) and since my hubby is still sleeping, silently read the Four Agreements 'Gratitude Prayer' fill my water bottle and then off to the gym.

This morning my trainer had me work on new core exercises that I have never done before.  One exercise was using a HUGE yellow ball, where I lie on it, place one leg up over my knee and balance on the one leg that is on the floor, holding position.  Now when I saw my trainer do it, it looked easy, peasy and simple. 

OH MY LORD - NO.  I could not balance on one leg for more than 5 seconds. Switched to the other leg, the more difficult side . . Uggghhhhh.  However round two, I was able to balance a couple seconds longer.

Inside my head I was thinking, "you're not trying hard enough." "if Rhonda can do it, why can't you."  I was getting frustrated with myself.  Then that little voice in my head said, gosh, you work out every day,  "why can't you do this simple exercise?" 

After the workout, Rhonda praised me and acknowledged how far I got with each core exercise and then preceded to say "these are advanced core exercises."

I felt a little better inside, yet immediately thought, I need to practice more to build my core muscles.  "I want to get this."

So then I thought I have to share this with my community and how it applies to "the heart of your business"  Your business finances are the core muscle that communicates to you when your business is on track.  Our core mucles are what hold us upright, and the core muscle of your business, finances is what is able to hold your business strong and grow. Such as revenue, profit, and cash.  Creating a solid organized foundation is about building a muscle.

A solid organized financial foundation is like our bodies, a communication tool.  It guides you to tell you what is needed.  Build revenue, increase prices, and/or decrease expenses to increase the bottom line.

I have learned it takes time and persistence to learn a new exercise, build strength in my core.  DARN IT . . .There is no magic pill for results to magically appear to build body strength or brain smarts with business finances.

What can you do? . . be gentle with YOU.  . with patience and persistence.  Practice, practice, practice each day, as if you are going to the gym of finance, and take baby steps.  Challenge yourself to learn something new every day. This finance stuff can get so serious and stuffy, so have some fun with it.

Each step you take is a success.  And share your successes each day with someone, a friend, mastermind colleague, even me, I would LOVE to celebrate with you . d.rosenfelt@cfomadeeasy.com. and acknowledge out loud to yourself.

So, I ask, what is to be tickled with the heart of your business?

And I can't let you go without a homework assignment.  . . for today  -  Create two colorful 2012 folders, with your favorite picture on it or colorful design.  . have some fun and be creative.  One for income receipts and the second for expense receipts.   

Here's to a colorful, sparkly, solid organized financial foundation.

Warmly - Your Chief Heart Officer - Debbie Rosenfelt