Episode Show Notes:
It’s the end of the month, and you’re sitting down to review your sales reports and Profit & Loss statement…
You open up Quickbooks or download the P&L that your bookkeeper or accountant sent over and see a profit. GREAT - pop the champagne, right?!
Not so fast … you hop over to your bank account, log in, and (record scratch) … your stomach drops.
Sound familiar?
You're not bad at math, and nobody is stealing from you. What you're experiencing is a cash flow gap — and it's one of the most disorienting, least-talked-about realities of running a bakery business (or really, ANY small business).
In this episode, we’re breaking down exactly why this happens and what you can do to avoid the gut-wrenching, stressful “cash flow gap” every month.
Key Takeaways:
Why profit and cash are not the same thing — and why that distinction matters so much in a seasonal business like yours
The four MOST common reasons bakery owners experience cash flow gaps (including a few you might not have considered)
Why a profitable year can absolutely contain unprofitable months — and how to stop panicking when this happens to you
Three practical things you can start doing right now to get ahead of cash flow crunches before they become crises
Resources + Links:
Bakery Finance Essentials — Ready to dig deeper? BFE includes a full cash flow planning system + spreadsheet for building out a complete month-by-month financial picture for YOUR bakery business
Free Bakery Profit Audit— a quick financial checkup to help you identify where your bakery stands right now when it comes to cash flow + profit
Got a question you'd like me to answer on the podcast? Email me!
[email protected]Join our Bakery Owners Facebook Group to connect with fellow bakers and continue the conversation
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