As Aaron Stokes says, cash flow is the lifeblood of any business. Properly managing the cash in your shop and building a reserve is key to giving your operations some room for error.
When managing your cash flow, Stokes says that discipline and emotional management is key, especially if you’re a newer shop owner. He goes over the keys for a shop owner to manage his or her back office operations, and get the rest of the team on board with the plan.
Here's a timeline of the episode:
- 0:56: The importance of cash flow
- 2:15: Difference between cash flow and a profit and loss statement
- 8:40: How to keep track of cash flow and accrual
- 13:08: Getting your team on board with the system
- 15:58 The importance of being disciplined with your cash
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