Description

Summary

In this episode, Shena and Jerry discuss the importance of cash flow for blue collar businesses. They highlight the issue of accounts receivable and how it can negatively impact cash flow. They emphasize the difference between cash flow and profitability, and the need to track and understand both. They also discuss the importance of creating budgets and estimates that accurately reflect the costs of materials and labor. Overall, the episode provides valuable insights and tips for managing cash flow in a business.

Takeaways

• Accounts receivable can significantly impact cash flow in a business.
• Understanding the difference between cash flow and profitability is crucial.
• Creating accurate budgets and estimates is essential for managing cash flow.
• Tracking and monitoring cash flow regularly is key to identifying and addressing issues.
• Seeking help and guidance from experts can provide valuable insights and solutions for managing cash flow.

Chapters

00:00 Introduction: Cash Flow as King

03:50 Understanding Cash Flow and Profitability

07:02 Paying Personal Expenses from Business Accounts

10:30 Tracking and Planning Cash Flow

12:54 The Impact of Accounts Receivable on Cash Flow

19:14 Being Data-Driven for Effective Cash Flow Management

23:28 Creating Constraints and Accurate Estimates

28:06 Transferring Estimates from Sales to Production

31:23 Overhead Costs and Profitability

33:46 Conclusion: Cash Flow as the Key to Success