Episode #191 - Colin Hewitt and Float Have the Answer to Your Cash Flow Problems - a podcast by WordPress business specialist Troy Dean featuring Seth Godin, Michael Gerber, Guy Kawasaki, Joe Pulizzi, Andrew Warner, James Schramko, Brian Clark, Ed Dale, Dan Norris and many more.
from 2018-11-19T00:00
Cash Flow Problems
Colin Hewitt is no stranger to the struggles business owners face in trying to manage cash flow. That’s how he came up with the idea for Float six years ago.
After graduating from university with a degree in Computer Science, and after a year of freelancing, Colin decided to launch a digital agency. It was here that he gained first-hand experience in the issue he would eventually solve.
In order to get a sense for his business’s cash flow, Colin first managed his finances in a notebook. Then, he began using a spreadsheet. The problem was, it took hours to enter, calculate and manipulate the data. Needless to say, the process was time-consuming, error-ridden and stressful.
A Cash Flow Forecasting Solution Was Born
Colin believed there had to be a better way to answer the question:
“Do we have enough cash in the bank?”
And this is what Float is for.
Float is a cash flow projection tool that integrates with accounting software Xero and QuickBooks. It takes all the data that you’ve configured and provides you with a clearer picture of your cash flow.
My favourite feature of the app and one I swear has been a game-changer for WP Elevation, is the one that enables you to spin up different scenarios.
Want to hire someone? Want to onboard a new client? Want to expand into selling WordPress Care Plans?
Simply plug-and-play. Float tells you how these changes will affect cash flow.
But Do We Really Need Another Finance App?
Float was built to fill a need that accounting software and three-way cash flow forecasting tools had been unable to.
With accounting software, you can centralise your business’s finances. However, these tools don’t focus on cash flow necessarily. It’s more about automating the collection of data. You still have to put in work to calculate what it means for profit-and-loss as well as cash flow.
Three-way forecasting tools take care of one of these gaps, obviously. But they utilise an indirect forecasting model, which relies on the data you’ve entered into the system. In other words: “We have this Software ABC expense to pay and this recurring payment from Client X we’ll receive in January.”
You can make accurate predictions for the long-term based on what you know, but it won’t tell you what’s in your wallet. If you want to know if you have the money to pay your bills right now, <em>in this very moment</em>, you need a direct forecasting tool like Float.
The Future of Float
As Colin looks towards the future, it’s clear that he’s trying to build something very special, not just for Float users, but for his growing team.
He asks questions like:
“How do we make it a system that anyone can adopt?”
He also doesn’t want to leave behind users who have already have established businesses and want something with more advanced controls. Cash flow forecasting is an issue for everyone, not just a startup or small business owner, after all.
As Float improves for the user, Colin also has his sights set on making Float a positive experience for his team.
“Are people happy? Are we creating a good space?”
These are important questions to ask now as he is currently attempting to hire someone to delegate operational management tasks to.
This is something we touch on again and again. If you’re serious about building and sustaining a successful business, you have to be willing to delegate tasks that aren’t in your wheelhouse.
Having the right environment to welcome them into is just one of the key factors that will enable Colin to land that perfect new hire.
A Special Offer for Our Podcast Listeners
I can’t rave enough about Float, which is why I’m happy to share this special offer with you:
Visit https://www.wpelevation.com/float and get 25% off your first 3 months of Float.
Success is important to us all and cash flow management plays a big part in that. Float has done wonders for WP Elevation’s cash flow forecasting, which is why I’m confident it will help in yours too.
See omnystudio.com/listener for privacy information.
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