Predict Cash Flow more accurately with Stagger Charts

Create more predictability in your business and do away with the wild roller coaster ride, have a better idea of what to expect month after month and save yourself plenty of stress and gray hairs with this cash flow prediction tool.

These charts help you keep your finger on the pulse of how your business is performing,

Predict Cash flow

Predict Cash flow

Why Use Stagger Charts

Stagger Charts were made popular by Andy Grove, the former President of Intel, in the book High Output Management. Forecasting is tricky and frustrating to begin with, and made more difficult by the fact that we as business owners are eternally optimistic. Forecasting is one of the hardest skills to develop and Stagger Charts the best way to become more accurate in your predictions. With Stagger Charts we can make decisions grounded on reality and not based on aspiration. You will get better and better at forecasting as you move forward, strengthening your “predictability muscles." It will help you identify trends and variances and get a more complete view of your business. This will enable you to react accordingly and take action based on real numbers and facts. It will make you an even better business owner without the stress and uncertainty, plus save you time and money caused by faulty projections and planning.

How To Use Stagger Charts

Predict Cash flow

1.

The GREEN blocks and numbers is your projected figures. The WHITE blocks and orange numbers is your actual figures.

2.

To start fill in the GREEN block in month 1, with your current actual cash flow amount.($100 in this case). Secondly, predict what will your cash flow be forward in the coming months by filling in the WHITE blocks.

3.

Next month repeat the process for the second month. Fill in the GREEN block in month 2, with your actual ending cash flow amount.($300 in this case). Then predict what will your cash flow will be forward in the coming months by filling in the WHITE blocks.

Now you can see how accurate your prediction was last month. Last month you predicted $200 (for month 2 - this month), but your actual number was $300.

4.

Just repeat the process every month. Predict what will your cash flow be in the coming months by filling in the WHITE blocks. Fill in the GREEN block with your actual ending cash flow amount and see how accurate your prediction was last month.

This process will teach you to become better and better at predicting your cash flow. It will also provide you with a record of your previous projections and actual numbers.

This method can also be used for several other applications in your business like sales, profit, units produced and many more.

Hope the tool helps and thanks for making use of our services.

Cash Flow Measuring Made Simple