gary [G2] suchy

Former unprofessional race car driver and part-time ice hockey hack

[gary [G2] suchy @SuchyMojo]

@Petersen_Media Kahne subbing in the 39M

[gary [G2] suchy @SuchyMojo]

@DTurford77x Need 5 on 5 OT

[gary [G2] suchy @SuchyMojo]

@morning_skate 5 on 5 OT

[gary [G2] suchy @SuchyMojo]

@HockeyThinkTank @JeffLoVecchio Attention (energy) paid to the bottom part of the lineup v the top performers. In practice, off ice, games, etc...

[gary [G2] suchy @SuchyMojo]

@Dirtshirtaday1 Put that one in a frame

[Brandon Wimmer @BrandonWimmer]

Today we remember those that have passed on and also made the ultimate sacrifice for our country! It’s race day @AtomicSpeedway with @WorldofOutlaws and we pay tribute to those people!

[gary [G2] suchy @SuchyMojo]

@HockeyThinkTank @therinkshrinks The same goes for business. Recruit competitive, curious and considerate people and great things can happen

[gary [G2] suchy @SuchyMojo]

@BnCAuto14 So much cool captured in 1 photo

[gary [G2] suchy @SuchyMojo]

@HockeyThinkTank No. Estimated at $24,000

[gary [G2] suchy @SuchyMojo]

@DavidGravel @TheDirtTrack @WorldofOutlaws @HusetsSpeedway @jacksonmotorplx @billionauto @JRCTRANS @BUTLERBuilt @GoPro The hands don't lie.. he gone

[gary [G2] suchy @SuchyMojo]

@WorldofOutlaws @outlaws_game @DonnySchatz @TonyStewart_Rcg @DavidGravel @BigGameMotorspt @carson_macedo @JJR41Updates @Haudenschild_R @SJMRacing17 @Haudenschild_17 North pole nightmare

[gary [G2] suchy @SuchyMojo]

@claykemp112 @caseysgenstore @knoxvilleraces @WorldofOutlaws @NosEnergyDrink @dirtvision @rexton787b @KempMelinda @tallguyike Boys are brought up right. Love the old school Ts.

[Michael Girdley @girdley]

“How much cash should I keep in my business?”

I get this question a lot.

For me, everything in business is about finding the right system.

So here's my WHOLE SYSTEM: exactly how to find your “ideal balance”. (Bookmark this one!)

—

You don’t want to have too little money. But too much money is also wrong.

Psychologically, CEOs tend to spend more when there’s a big surplus in their bank accounts. (Just how it works – humans are flawed.)

So your starting point is → 3 to 6 months of expenses.

But every business is different. Use the following 8 factors to dial that estimate up or down:

1️⃣ Seasonality: If your revenue and expenses are concentrated in a few months, keep 6+ months of expenses.

2️⃣ Newness: Young businesses are less certain, so should keep more cash on hand.

3️⃣ Asset liquidity: How liquid are your assets? The easier it is to get cash, the less you need in the bank.

4️⃣ Credit access: SBA loans are great but slow. Do you have other options (like a line of credit) for quick cash?

5️⃣ Client base size: This is about volatility. A big, diversified client base means your revenue is stable. A few key clients mean things can change quickly.

6️⃣ Client stickiness: How confident are you that your clients will stay? Will your clients be here tomorrow? Next year? Five years from now? And crucially: how do you know that? Can you get a second opinion?

7️⃣ Growth plans: If you’ve got big purchases or investments coming up, keep more in cash reserves. If sales are expected to grow, how much cash do you need to fuel the flywheel? Do you plan to hire soon?

8️⃣ Industry / economic trends: What’s coming up for your industry? What are your customers doing? Look to history: what typically happens in your sector during downturns?

—

Once you’ve dialed in those, a small business should build a budget for each year.

1. Pull up your previous year’s financial statements.

2. Go through each expense line and estimate monthly spend for the next year.

3. Then calculate your avg production costs based on your sales.

—

Calculating your “Ideal Balance”

You’re almost there. Now just:

- Take the calculation of costs you just made.
- Adjust based on your business plan for the next 12 months.
- Adjust to your comfort level and the 8 factors above.

If the number seems crazy high, don’t panic. You can use this as a benchmark to work towards.

—

A few things to consider:

First, revisit this number regularly. Your cash needs will constantly evolve. Book it into your calendar to reevaluate every quarter.

Second: I recommend making three projections. Think about what “best”, “worst”, and “average” look like for your business. Then project each.

Remember: a ton of sales might actually mean less cash (as you spend on inventory, etc).

—

The bottom line: it doesn’t matter what your average week looks like.

It’s your “worst week ever” that matters:

You only need to run out of cash once to go out of business.

—

Thanks to @KurtisHanni and @SecretCFO for sanity-checking this!

Any mistakes are my own.

If you nerd out on stuff like this:

♻️ Give this a retweet or a comment
🔔 Follow me @girdley
📨 Subscribe to my Small Business MBA newsletter → Link in bio!

[gary [G2] suchy @SuchyMojo]

@brayden_mcmahan I've heard it called adulting

[gary [G2] suchy @SuchyMojo]

@JhanHky Should power plays in the playoffs change to counter PKs or is the better method to be better at set plays already developed

[gary [G2] suchy @SuchyMojo]

@fwilliamson73 I believe he ran 270cc micros at the farm show building as well

[gary [G2] suchy @SuchyMojo]

@Dirtshirtaday1 @ChrisFerguson22 @Terbo_91 Ferguson

[gary [G2] suchy @SuchyMojo]

@Dirtshirtaday1 @BradyBacon Bacon

[gary [G2] suchy @SuchyMojo]

@Dirtshirtaday1 @TheFast49 Schrader

[gary [G2] suchy @SuchyMojo]

@Dirtshirtaday1 @dustinlinville @TyCourtney7BC Sunshine