Pillar Four – Cash

Growth sucks cash. It’s the first law of entrepreneurial gravity. You may get by with subpar people, strategy, or execution, but you won’t last a day without cash.

• Do you have consistent sources of cash?
• Are you generating it internally?

Knowing the answers to these questions is the first step of your growth journey! If you don’t know the answers, I will work with you to find them.

Cash Acceleration Strategies

Great companies have 3-10x more cash than their competitors. Cash reserves allow companies to weather economic storms and survive the expensive experiments that go into any growth process.

We will work together to figure out how many days it takes for cash to cycle through your entire business model and back into your pocket. For example, it may take 21 days from the time you spend a dollar on anything before it comes back into the business via your bank account as cash. This number will help us know how quickly your company can sustainably grow.

Improving Your Cash Cycle

To improve this number, we will work with your CFO by asking them to provide a modified cash flow statement every day. Then we will do an exercise to give you an idea of how long your cash cycle takes.

Then, we will examine your business systems, for instance, your sales cycle, production cycle, or billing cycle.

For each of these cycles, we will come up with ideas to improve them.  Thus improving your cash cycle.

I can help you make better cash decisions and strategize. For example, you can give value back to customers who pay on time or in advance, shorten delivery cycles for your product/service, or obtain recurring credit card authorizations.  So, please call me with any questions.