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How to identify elements that drive cash flow, calculate a company’s financial gap, analyze if their company is having a cash shortage, and more are topics of this week’s free webinar presented by the Small Business Development Center at CSU Bakersfield.
Host and SBDC director, Kelly Bearden is joined by Mike Milan, a business financial consultant who specializes in small business cash flow management. Milan’s presentation focuses on helping business owners learn how to identify elements that drive cash flow, how to calculate a company’s financial gap, how to analyze if their company is having a cash shortage, and how to make corrections.
Milan has more than 20 years of experience in strategic planning, finance, and sales. During that time, he developed 14 business startups and created several FinTech software products including CashFlowTool, Finagraph, and Path by Simplex. Also known as “Cash Flow Mike,” Milan is an Army veteran and earned his MBA from Baylor University.
Kelly begins the webinar with information on the upcoming Corporate Transparency Act and available capital resources programs. This marks the 300th episode of the weekly “Webinar Wednesday” business series that provides news and information helpful to employers and business owners.
The CSU Bakersfield SBDC provides free one-on-one consulting to help small business owners. New and existing businesses can go sign up for assistance by clicking here!
TIMESTAMPS The Bold blue underlined links below are where Kelly pays tribute to Jim Arnold, and Mike Milan begins his presentation
00:00 Intro
00:37 What’s up today November 29, 2023
04:23 Poll Question #1: “How do you find out about your current cash flow?”
06:39 Poll Question #2 “Which country had the best-performing economy during the pandemic but has declined significantly over the past year?”
08:01 Corporate Transparency Act (CTA) Effective 1/1/2024
09:33 Capital Corridor: How Cash Flow is Essential in Lending Decisions
12:34 2022 Federal Reserve Credit Survey
13:54 Outcomes of loan, line of credit, and cash advance applicants
14:50 Applications are open for $10,000 grant for Mono County Business Owners https://tinyurl.com/MonoCountyGrant
15:24 Want to run a home day care business? $1,000 start-up grants
20:40 See what tools the SBDC has for your business
20:55 CSUB SBDC YouTube Channel
21:20 Upcoming Webinars
21:45 Kelly introduces Mike Milan, also known as “Cash Flow Mike”
23:35 Mike Milan begins his presentation
25:38 Free e-book “The Seven Minute Conversation”
26:40 The Fast Money Formula
29:25 Working Capital
30:09 Sample Company
31:10 Inventory – Accounts Receivable – Accounts Payable
32:47 Calculating the Financial Gap
33:19 A Different Way to Calculate the Financial Gap Using a Calendar
33:40 Inventory 15 Days
33:59 Accounts Receivable +27 Days
34:18 Accounts Payable – 30 Days
34:43 Financial Gap
35:00 How to put this to use in real life: Sample Company example
36:30 Cash Need Formula
37:25 Cash Shortage Calculation
39:40 Sample Company example continues
42:14 Service Based Companies – Inventory of hours or employees' time
42:50 Accounts Receivable +25 Days
43:05 Accounts Payable /14 Days
43:28 Financial Gap
43:55 Cash Need Formula
44:18 Cash Shortage Calculation
44:57 Fast Money Formula Worksheet
45:51 Clear Path to Cash App Demonstration
47:21 Kelly rejoins Mike for discussion, plus Questions and Answers
