Are you doing okay? Do you need to borrow some money?

My mom had never offered to loan me money before. Probably because she never had any to spare.

“It’s okay if you’re struggling,” she said. “I have a bit saved away. I’m happy to help.”

It took some doing to convince her I was, in fact, doing okay financially. I wasn't having money issues, I was having a ‘too much work, I'm stressed the f out’ issues.

The conversation moved on to more important things: the cost of the roast nowadays, her new-to-her chairs that she loves, and what my cousins' kids have learned recently (they're riding bikes now!). But that initial blip about money stuck with me and got me thinking about cash flow.

Cash flow issues are the most frequently given reason for why businesses fail.

The danger isn’t a lack of consistent sales.

Even consistent sales don’t guarantee safety. The real danger is not seeing the gap widening in advance.

If your expenses are creeping up and your revenue dips, even just slightly, for a few months, you might not notice a problem until it’s too late.

Believe me. I know.

A few years into my business, everything was great. I had regular clients I loved. Referrals were coming in like clockwork, and I was making more than I’d ever had. I felt like I was on top of the world.

But I was working so much, I’d let one of my key habits slide: my weekly cash flow check-in.

What used to be a Friday ritual got pushed back. Then skipped. Then forgotten.

By the time I finally took a look, I was just weeks away from not being able to make payroll.

Luckily, I managed to turn things around. But it was a wake-up call.

Now, every Friday I spend an hour or so updating my forecast, reviewing upcoming expenses, and just making sure I’m not headed toward trouble again.

I won’t tell you it’s easy or fun.

I’m a sucker for a good spreadsheet but even I find the work a bit tedious.

And of course, there’s the fear.

The fear that if you look, you’ll find you’re moments away from having to smile while some entitled corporate big shot tells you you made their cappuccino wrong.

Or the fear that you’ll find you’re doing well, but somehow looking will cause the universe to take notice and decide to knock you down a peg (just me?).

Problem is, the only way to avoid a nasty surprise is to see it coming and adjust accordingly. You can’t do that if you’re not looking.

Now, my process is a little… intense. It works well for me, but it’s not for everyone. I know because when I show it to people, they ask if I can just do it for them.

Luckily, I’ve got something simpler you can start with. A 3-month trend line. It’s super easy and actionable.

All you need is your total revenue and expenses for the last 3 months. If you don’t have those, ask your bookkeeper.

Best part? You only have to update it once a month.

Over time, that line will tell you exactly how things are trending—and help you make decisions before problems show up in your bank account.

I made you a quick video about it; check it out below (bonus you’ll find a link to a 3-month trend line template in the description below the video—free, no opt-in required).

If you’re not sure what your trend line is telling you, feel free to send me a screenshot (you can crop out the numbers if you’d prefer—I just need to see the shape of the line and the months).

I’ll send back a quick note about what I’m seeing and what you might do about it. Totally free. No pitch. Just happy to help.

Xo,
Sandra

Ps — Don’t have a bookkeeper and find it too hard to track your revenue and expenses on your own? Then consider this a friendly nudge to please get one. If you don’t know your revenue and expenses, you can’t make smart decisions. And your business deserves smart decisions.

Pps — Wondering what my process is? I forecast all of my expenses and projected revenue for the entire year, then reconcile and update the forecast weekly.

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