Private equity
Post LinkedIn lead magnet ยท Private equity
One of my favorite metrics even though it can sting... cash runway when everything else disappears ๐ ~~~ ๐ฅ๐ง๐;๐๐ฅ: Grab the template ๐ https://lnkd.in/eDzuV6Mf ~~~ ๐ญ. ๐๐ฎ๐๐ต ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฏ๐ฎ๐ป๐ธ ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐ 1. Open your bank website 2. How much cash is sitting in there right now? 3. Enter that number in cell C6 โธปโธปโธป ๐ฎ. ๐๐ฑ๐ฑ ๐ธ๐ป๐ผ๐๐ป ๐ฟ๐ฒ๐ฐ๐ฒ๐ถ๐๐ฎ๐ฏ๐น๐ฒ๐ If you're ๐ฐ๐ฒ๐ฟ๐๐ฎ๐ถ๐ป you're going to collect some AR, enter that in cell C7. Just enter $0 to be more conservative. โธปโธปโธป ๐ฏ. ๐ฆ๐๐ฏ๐๐ฟ๐ฎ๐ฐ๐ ๐๐ฝ๐ฐ๐ผ๐บ๐ถ๐ป๐ด ๐ฝ๐ฎ๐๐ฎ๐ฏ๐น๐ฒ๐ Subtract out known payables that are due shortly or spoken for: - salaries - vendor payments - estimated tax payments These go in cell C8. โธปโธปโธป ๐ง๐ต๐ฒ ๐ฟ๐ฒ๐๐๐น๐: Add the numbers up... You get a snapshot of "net cash left today" (cell C10). โธปโธปโธป ๐ง๐ต๐ฒ๐ป, ๐น๐ถ๐ป๐ธ ๐ฒ๐ ๐ฝ๐ฒ๐ป๐๐ฒ๐ Go to your three statement model. (๐บ๐ฐ๐ถ'๐ท๐ฆ ๐จ๐ฐ๐ต ๐ฐ๐ฏ๐ฆ, ๐ณ๐ช๐จ๐ฉ๐ต?) Take your total monthly expenses and link them through column E. ๐๐ผ๐ฟ๐ด๐ฒ๐ ๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ. Expenses only. (Note: if you want to be more precise, link your free cash flow instead, but strip out revenue flowing through AR) โธปโธปโธป ๐ง๐ต๐ฒ ๐ฟ๐๐ป๐๐ฎ๐ Time to get real. Column H calculates how many months of runway you have right now, expenses only, assuming you never generate another dollar of revenue or raise capital. This can hurt. I know. It can also be extremely valuable. I call it "Doomsday Runway." How many months of runway do you need to sleep at night? See if you can maintain (or ideally, stay above) that number. Update this analysis monthly and keep track on a chart. It's a great visual. Hopefully, this simple exercise can give you peace of mind. From there, everything else is upside. Hope this helps ๐. โธปโธปโธป ๐ ๐ผ๐ฑ๐ฒ๐น๐ถ๐ป๐ด ๐๐ถ๐๐ต ๐๐ ๐๐ผ๐ป'๐ ๐ต๐ฒ๐น๐ฝ ๐๐ป๐น๐ฒ๐๐ ๐๐ผ๐ ๐๐ป๐ฑ๐ฒ๐ฟ๐๐๐ฎ๐ป๐ฑ ๐๐ต๐ฒ ๐ณ๐๐ป๐ฑ๐ฎ๐บ๐ฒ๐ป๐๐ฎ๐น๐. ๐ These models run the business ๐ https://bit.ly/FMECourses
Mรฉcanisme lead magnet
Grab the template ๐ https://lnkd.in/eDzuV6Mf