Explore cashflow with GrowthPath's free cashflow simulator
A simple cashflow simulator is a powerful way to teach people about the importance of cash flow. GrowthPath offers a free, simple cashflow simulator designed to help SMEs get a feel for tuning cashflow. Downloads for Windows and Mac. You set supplier and customer credit terms, initial cash, demand, and you can set customers to be unreliable payers to see how late and unpredictable payments affect cashflow.
New: V2now has a chart windows showing cashflows graphically, and a bank of ten starting values for simulations.
By playing with working capital drivers of cash flow, you can quickly see how interactions with customers and suppliers affect the business. The GrowthPath cashflow simulator lets you set initial cash and margin. During the simulation you can change customer and supplier credit terms, credit limits and payment behavior. You will learn that sometimes the business deteriorates to the point where nothing can save it.
It's a free download: Get it!. At the time of writing, we've uploaded a Windows program and an OS X version (tested on 10.7 Lion). It's written in Python, for linux users the source code is available as well. Published under an open-source licence.
- Details
Read more: Explore cashflow with GrowthPath's free cashflow simulator
The problem with traditional budgets
Traditonal business budgeting is anti-growth. It lowers performance, wastes time and causes lost opportunities. The solution is to simplify.
- Details
Read more: Traditional budgets: moving at the speed of yesterday
the Agile CFO: Leadership in uncertain times
The uneven effects of the high AUD
The Australian dollar has stabilised at near parity with the USD. This gives some benefit to traditional retailers, whose goods become cheaper, but overseas online retailers get a much bigger advantage because all their costs are now in a weaker currency; local retailers still face AUD costs like rent and wages. Many Australian business will be forced to react; some will turn this situation to great advantage. The internet and the AUD give as well as take.
(based on an article published on tim-richardson.net October 2010)
Make your Finance team a partner for growth
Finance is traditionally a back-office role. Many small business owners see finance as the people who pay the GST, do payroll, keep the bank happy and chase slow-paying customers. In large firms and overseas, Finance is transforming. It has become the crucial partner of the business owner or general manager: able to prioritise the best growth opportunities, and able to manage the cash flow and financing to take advantage of opportunities. This is known as Finance Transformation. It makes just as much sense for small businesses. The transformation approach needs to adjusted, to be simple and more practical.
The finance team's revised mission is based on four pillars.