Before you get stuck into the recipe, test your skills in this supa quick 10-step assessment below. Then, try again at the end to see your improvement.
Click below to begin the assessment.
Question 1 of 10
What mistake did Philip make in his first business that led to cash flow issues?
He overestimated the budget he needed for his business.
He underestimated the budget he needed for his business.
He invoiced his customers too late.
Question 2 of 10
Should you include a budget and forecast in your business plan?
Yes, so you understand how much money you need to raise. Yes, so you understand how much money you need to raise.
Yes, so you can plan your marketing budget.
No, investors don’t need to know how you’re going to spend the money.
Question 3 of 10
What is a forecast?
A forecast tracks how you spend your money.
A forecast tracks the reality of your budget.
A forecast predicts the sales you’ll make in the future.
Question 4 of 10
How should you use your budget?
To track the actual income and expenses.
To predict future income and expenses.
To compare your actuals against your planned income and expenses.
Question 5 of 10
What does Philip advise entrepreneurs to do to start budgeting?
Hire a good accountant.
Buy into the concept and just start.
Do your research on the various ways of budgeting.
Question 6 of 10
What does it mean to make budgeting part of the culture of your business?
Leading by example, communicating the reasons for budgeting and getting everyone on board.
Making it a requirement and communicating the ramifications of going over budget.
Having your team come up with their own budgets.
Question 7 of 10
What is a three-month runway?
When you have enough money in the bank to cover your expenses for three months.
When you pay three months’ of expenses in advance.
When you invoice three months in advance.
Question 8 of 10
Why is timing so important in terms of cash flow?
The faster you get cash into your business, the more you can spend.
It’s important to get cash in, in time to pay somebody else.
The trick to saving is paying your suppliers late.
Question 9 of 10
What is a good way to not spend money?
To move any surplus cash into your credit account.
To keep your surplus cash in your main operating account.
To move any surplus cash into a savings account.
Question 10 of 10
What is Xero?
Banking app.
Accounting software.
The balance of your bank account.