How To Chart The Progress of Your Company

How To Chart The Progress of Your Company

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

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