When is the last time you had your car’s oil changed? You probably take your much-loved, relied-upon, trusty vehicle in for a tune-up on a regular basis. When is the last time your company had a tune-up? Yes, your business needs a tune-up. More specifically, it needs a cash flow tune-up. This, much like your car’s regular maintenance, should keep it running more efficiently and effectively.
Recently, I conducted a cash flow tune-up (aka cash flow analysis) for a client of mine. This client is a manufacturer’s rep firm that sells engineered building-solutions for commercial and industrial buildings to general contractors. It’s a business with a long sales cycle for most of what they sell. The company must also hold substantial inventory in their warehouse.
We pulled information from the P & Ls and Balance Sheets from the last three years. We analyzed the numbers and created a report of exactly how the cash flows in to and out of this business. From that analysis, we found opportunities for what I call “One Percent Solutions.” These One Percent Solutions would create $202,487 in additional cash by making some simple tweaks to some preexisting processes. This definitely caught the CEO’s attention.
After some brainstorming, we determined that we could do even better. From now on, we’ll perform a cash flow tune-up quarterly to make sure we are progressing on the One Percent Solutions. A few of those One Percent Solutions will be turned into Five and Six Percent Solutions therefore creating more cash to use for growth opportunities.
While I can’t guarantee the exact same outcome for your business, I’m pretty sure by doing a Cash Flow Tune-Up, we can find significantly positive cash improvement for your company.
Interested? Call me or email me or set an appointment using the information from the contact page
Let’s create some cash for your business to invest in growth!