The ugly truth about cashflow forecasts?

Is it only me who thinks that cashflow projections and business plans are a load of bollocks?

Silly thing to say? Well here’s my thinking…

I once went for a bank loan to start a business with a mate YEARS back – over twenty years ago…

…and our business model was the biggest work of  fiction since the British royal family changed their name to Windsor and started their “Honest we’re not really German” campaign…

We had cashflow projections, forecasts and a five-year business model.

It was the biggest fairy story since Snow White decided she liked them ‘short but lots of ’em!’

And the bank loved it.

We got the loan and promptly started a totally different business with the money which was quite successful.

Yes I know that some of you will consider me an amateur for daring to say this but COME ON – cashflow forecasts and projections would be great except for one thing…

real life gets in the way.

You might say ‘well they’re just there to give an indication…’, but it might be a totally WRONG indication

The economy changes for one thing.

Lehman Brothers’ cashflow forecast was about as useful as Anne Frank’s drum kit.

It’s worse in internet marketing, Google does updates, domain registrars go out of business and you lose your domains, Paypal closes your accounts, some governing  bodies somewhere changes the rules on website terminology…

…or, as I reckon is a possibility, the Euro ends up being worth less than a fart in a spacesuit.

But it’s also the reason I LOVE internet marketing – online business in general – in fact all levels of entrepreneurship…

because you don’t have to play by the rules.

In my humble opinion the biggest skill you can have as an entrepreneur is being good at problem solving

(or ‘getting yourself out of the sh*t’ as my old gran used to say)

You don’t have to ‘do’ mainstream to be in business online, and that’s what makes me passionate about IM

You can be a pioneer, you can try stuff, and can plan your business in whatever way you want to,
ignoring cashflow forecasts and any other crystal-ball gazing just because other people do it IF that’s
what you want to do.

It’s up to you.

You can make those decisions.

Why follow the instruction booklet when you can write it eh?

Try stuff. Do new things. Take chances

Be brave and have a great time doing it 🙂



Get my blog posts delivered by Email

One response to “The ugly truth about cashflow forecasts?

  1. Great post Tony!

    I quite miss posting on this blog as I used to in days of old lol

    I feel that life gets in the way of any plans – AND yes – cash forecasts are a totally made up concept in order to get some bank or loan company to agree to lending you cash .. which you promptly spend elsewhere – without question.

    The thing is… any kind of plan (such as a “goals and to do plan”) is always throttled by the unexpected and daily events of life.

    I know people say stick to the power of one and don’t get diluted, however it never quite works that way ehh??

    There’s always 20 things demanding my attention right NOW, and how they are dealt with is where the skill is…

    …anyway I’m going off topic – but yes I guess Im just saying I agree with you mate (as always lol).

    Cheers Carl

Leave a Reply

Your email address will not be published. Required fields are marked *