0:01
so we we find are visual tracking to
this thing called the
this thing called the
0:04
vital stats dash we create a little
slide that was a
slide that was a
0:08
arm I i mean a simplified version and I
what I did is a
what I did is a
0:13
went back into our have histories
business
business
0:16
I took a random ninety-day slice and I
said former
said former
0:20
strip this down so that’s not all the
different charts in all the different
different charts in all the different
0:23
metrics
0:23
and just just give us four so you can
see
see
0:27
what something like this might look like
and you can see that they’re
and you can see that they’re
0:32
four columns of numbers its obviously
very small but this is what is on the
very small but this is what is on the
0:35
left hand side it all dates
0:37
down the left hand side just the day
0:41
ninety days in row the first column
0:44
is our bank balance checking account
balance
balance
0:49
this particular period things seem to be
going well
going well
0:53
because the checking account balance was
going up overtime over 90 days
going up overtime over 90 days
0:57
the next chart was the daily cash
deposits
deposits
1:00
the next chart was what we call our net
cash in on explain that to you in a
cash in on explain that to you in a
1:05
moment
1:06
and our next chart was our daily
expenses if you look at these
expenses if you look at these
1:12
and you see here figure in a seven day
moving average trees
moving average trees
1:16
you can see that there are cycles you
see the cycles
see the cycles
1:20
in the numbers so in the bank balance
1:24
she goes up for a little bit a minute
drops of and then it goes up for a bit
drops of and then it goes up for a bit
1:27
and then it drops of
1:28
what was going on there right we’re
paying our bills every two weeks it
paying our bills every two weeks it
1:33
looks like right there
1:35
I can just see by the amount of time
that goes between looks like we’re
that goes between looks like we’re
1:38
paying our bills but every two weeks
1:39
your drop-off no drop-off daily cash
deposits
deposits
1:43
what was going on there where you can
see the rich too heavy days
see the rich too heavy days
1:48
than three days are a little lower and
into the word 0 I know because I nor
into the word 0 I know because I nor
1:52
business that that was Monday and
Tuesday that with a high deposit days
Tuesday that with a high deposit days
1:55
why we’re Monday and Tuesday much higher
than the other three
than the other three
1:59
because the weekend deposits from the
weekend we’re going in
weekend we’re going in
2:03
I the net cash is a metric that
2:06
I literally invented and what I mean
2:10
I probably wasn’t the inventor of it but
I made it up for us
I made it up for us
2:13
and more like I said is you know we
gotta figure out where would we be at
gotta figure out where would we be at
2:18
its kinda like a mini a cruel
2:20
method looking at your your value
2:23
if we were to even up all the money we
have coming in
have coming in
2:27
in the money we have in the bank all the
money that we’ve gotta write checks for
money that we’ve gotta write checks for
2:30
the next
2:30
30 days or so where would we actually be
2:34
what’s the real value what’s the real
cash value for business right now
cash value for business right now
2:37
this one takes a little bit of time to
actually figure out but i wanna know
actually figure out but i wanna know
2:42
did we write seven hundred thousand
dollars worth the checks
dollars worth the checks
2:46
and I don’t really know that that you
know it’s not reflected right here
know it’s not reflected right here
2:50
and we don’t want install a big accrual
accounting system and go through all
accounting system and go through all
2:53
that hassle to balance the EP in the AR
and all that stuff
and all that stuff
2:57
this net cash we actually still use a
version up to this day and it’s been
version up to this day and it’s been
3:00
very valuable to me
3:01
we just settle up everything that’s
happening right now where we really at
happening right now where we really at
3:05
would we really stand
3:06
and I expenses this is a this is an
interesting one to track on a daily
interesting one to track on a daily
3:10
basis
3:11
if you’ve got you know credit card the
use for everything you to pay by
use for everything you to pay by
3:15
couple credit cards or checks you just
have someone log in and put the expenses
have someone log in and put the expenses
3:19
in every day
3:20
and then run a moving average to you can
see the
see the
3:23
the cycle that we’re going through and
you can see that
you can see that
3:26
when you smooth out you get a very
consistent chart
consistent chart
3:30
now if you don’t know what’s going on in
your business we rewind for second
your business we rewind for second
3:36
I like these metrics right bank balance
cash deposits net cash expenses
cash deposits net cash expenses
3:41
very simple financial numbers here I
have a trackback: tenia marketing which
have a trackback: tenia marketing which
3:46
is not
3:47
first kid but if you don’t know any of
this stuff and once in a while you’re
this stuff and once in a while you’re
3:52
just looking at the bank balance online
you’re thinking how much do we have to
you’re thinking how much do we have to
3:55
write it checks and
3:56
askin someone how much we which is
payroll and whatever
payroll and whatever
3:59
you have no way of knowing whether or
not
not
4:03
your business is stable
4:08
you don’t know if it’s going up you know
if it’s going down you just really don’t
if it’s going down you just really don’t
4:11
know what’s happening
4:13
most I use a lot of these terms because
I don’t have
I don’t have
4:17
no specific numbers but most up the
entrepreneurs I know if I said
entrepreneurs I know if I said
4:22
can you show me something like that
chart give anything like that they just
chart give anything like that they just
4:25
say
4:26
now and he will be a few even for what’s
going on they say I’m
going on they say I’m
4:30
really I mean we seem to making profit
because we’re surviving
because we’re surviving
4:34
I think we kinda spend about this much
in we can spend about that much
in we can spend about that much
4:38
now how long does it take to build
something like that thing later showed
something like that thing later showed
4:44
I mean really how long does it take to
build something like that let’s say on a
build something like that let’s say on a
4:47
daily basis he did it every day for 90
days
days
4:49
yet someone his pro day to honor left
side in the field in those four boxes
side in the field in those four boxes
4:54
I want to really take to gather that
data every day
data every day
4:58
minutes in a few minutes you walk into a
couple terminals you have someone on
couple terminals you have someone on
5:02
your team just do it you see here put
these four numbers in these boxes
these four numbers in these boxes
5:06
now who doesn’t have something like that
5:09
for their key metrics the business rate
raise your hand if you don’t
raise your hand if you don’t
5:13
okay and who does mission a good
5:16
now for those that don’t how would you
5:19
feel if tomorrow
5:24
if this was your chart this showed up in
your
your
5:28
your email tomorrow and you knew that
every day you can just open this thing
every day you can just open this thing
5:31
up
5:31
glance at it and see what’s going on how
would you feel how would your
would you feel how would your
5:35
got feel
5:39
relief maybe a little more peace about
your business
your business
5:43
little more certainty so
5:47
you know let’s say you have someone on
your team the dose administrative stuff
your team the dose administrative stuff
5:49
in
5:50
you know the ten dollars an hour and it
takes them 30 minutes
takes them 30 minutes
5:54
to do this thing every day cm do it for
30 minutes
30 minutes
5:58
is worth five bucks a day to be able to
just quit think ago
just quit think ago
6:01
right everything’s cool everything’s
normal the instruments are reading that
normal the instruments are reading that
6:05
we’re doing fine