When a client runs low on cash, set up a six-week cash flow forecast to map payroll and obligations week by week, then switch to weekly check-in calls to monitor spending and push back on nonessential expenses.
What should you do if you have a client that's in the middle of a major cash crunch? The best advice I can give you is to immediately put in place a six week cash flow forecast and switch over to having bi weekly check in calls. Let me break both of those down. The reason that I like a six week cash flow forecast is because it looks far enough into the future that the business owner can see things that are coming up like payroll. But it's also in the weeds every single week which forces the business owner to start micromanaging every single penny that's going out of the business. This is going to help them extend their Runway and become more familiar with the money going out business. That isn't absolutely necessary. The reason that I like weekly check in calls for a limited time is because it helps the business owner make sure that they feel supported. But it also gets you as the fractional CFO into the weeds so that you can help push back on that business owner on any expenses that aren't absolutely vital. Six week cash flow forecast. Weekly check in calls. That's going to help your clients a lot if they get into a cash crunch.
