Next Worry Date
NEXT WORRY DATE
A few years into running my agency I found that worrying about finances was becoming detrimental to my progress (and health). So, I developed a method to tell me “when” I really needed to worry about money, and when I should keep charging forward. If you ever find yourself worrying about money, it is time to calculate your Next Worry Date.
In summary, add together your cash in the bank, accounts receivable (money you have billed but not yet collected), and future billings (money you will bill in the future for projects you are working on now). Then divide that by your monthly overhead (your business or personal costs per month). Then subtract by one and you will have your next worry date. This is how many months you have until you need to worry about money.
Subtract One Month = Next Worry Date
So, what do you do if on the Next Worry Date? REACT! Either green light some projects, get a job, or cut costs today!