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Projecting Cash Flow

March 19, 2020

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It’s crucial to project your cash flow during uncertain business conditions.

For example, if you have an order backlog, contact every customer and prospect to get a sense of whether the order is still valid. Revalue your order backlog based on the responses you receive.

Also:

  • Use appropriate skepticism when it comes to timing and amounts as others are pursuing the same opportunities you see.
  • Build a new revenue projection on a week-by-week level.
  • Build a “barebones” cost budget using the suggestions to conserve cash.
  • Create a week-by-week cost budget.
  • Consolidate your cash-on-hand, revise revenue forecasts and revise costs.
  • Calculate your cash position at the end of each week.

Please send suggestions to improve this playbook to pandemic@umbrex.com

 

Contributors:

Christoph Knoess