Blaine Bertsch, the founder of Dryrun, is no stranger to hard times. He ran a creative agency for over a decade. During the2008-2009 financial crisis, he learned some valuable lessons that directly influenced the design and performance of the Dryrun tool.
Blaine is comfortable sharing his insights to help his fellow creative entrepreneurs. In a recent interview, he said,"The 2008-2009 financial crisis was a tough time for many businesses, including mine. But I learned some valuable lessons during that have helped us overcome the slowdown and get back and track fast.
"One of the key lessons I learned is the importance of cash flow. During the crisis, a lot of businesses went under because they didn't have enough cash on hand to weather the storm. I designed Dryrun to help companies to keep track of their cash flow and buy them time to make critical decisions.
Q: Why Does Cash flow Matter?
A: As a business owner, keeping a close eye on your company's cash flow is essential. Aside from just maximizing revenue, positive cash flow is critical for growth and fulfilling your business's potential in the long term.
There are a few key reasons why cash flow matters:
1. It's a key indicator of your business's financial health.
2. It can help you identify and solve cashflow problems before they hit.
3. It can help you make better decisions about allocating your resources.
By understanding why cash flow matters, you can take steps to ensure that your business is on the right track for long-term success.
Q: Why is cash flow essential to business growth?
A: As a business owner, you always want to see your company grow. After all, one of the best parts about being an entrepreneur is seeing your creation come to life and just how far it can go. However, growth can be difficult, especially if you don't have a steady source of positive cash flow.
There are many ways to drive business growth but it’s critical to identify the key opportunities for your business, test and validate your options, then prioritize and double-down and the key drivers for your business.
Whatever method you choose, growth takes time, effort, and, most importantly, cash. With a steady positive cash inflow, patience, and persistence, your business reach new heights.
Q: HowCan Dryrun help a business grow?
A: It’s all about knowing your options and making the best choice. Dryrun can visually display all your cash-in and cash-out transactions over a timeline into the future. It will give quick insight into your runway (Days you can survive if the business was to stop producing.) Then it equips you to rapidly model different scenarios to visualize the path forward..
Q: What are some of the other uses you have found a sound cash management system invaluable to your creative business?
A: Quiet periods. Like all businesses, creative agencies go through ebbs and flows of business depending on the time of year. You may find yourself with adequate cash flow while things are busy during the summer months, but if you fail to take steps to ensure there’s plenty in the pipeline for later in the year, you may be in trouble.
We often experienced the highs and lows that resulted from the inability to sell during busy times, scrambling to bring in more work as the flow of cash and jobs slows, then the bounce of multiple jobs landing at once, resulting in capacity issues.
Dryrun helps you predict the ebb and flows, better manage your sales pipeline and smooth out both your cash flow and capacity.
Q: As digital is a massive part of the creative world, how does the need for investing in new technology factor into cash management?
A: As digital technologies continue to evolve, it's becoming increasingly crucial for creative professionals to invest in new tools and resources. While this can be a significant investment of time and money, it's essential for staying ahead of the competition.
Creating a budget in Dryrun can help businesses by providing them with the resources and information they need to make informed decisions when investing in new technology. Such questions of when to invest, what it will cost and when we can expect a return on investment can be visually displayed overtime and show the impact that these decision will have on the business.
Q: Final thoughts on a creativeAgency and the need for good cash management?
A: As a business owner, it's important to keep a close eye on your company's cash flow. After all, positive cash flow is essential for both short-term growth and long-term success. And in today's ever-evolving business landscape, cash flow is more important than ever to ensure your company can continue investing in the latest technology, team members and capture new markets.
And it’s important to remember that managing cash flow isn’t just a task for times when you’re running close to a shortfall. Smart management when you have lots of cash on hand ensures that you’re getting paid what you’re earned, but additional cash on hand also gives you more freedom and flexibility to grow.
Fortunately, you don't have to go it alone. Dryrun will help you take control of your near term cash flow, get a handle on your mid-term sales pipeline and light the path forward for long term growth.
Do you need some help building and maintaining weekly finances? Check our Dryrun’s Featured partners who have the expertise to work with you and your firm to manage, model, and move forward.
Forecast Your Cash Flow, Revenue and Profit in the Ultimate Scenario-Modelling Tool to gain confidence, clarity and insight into your business.
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