How Do I Find Hidden Cash In My Business? from Mike Milan on Vimeo.
It’s Cash Flow Mike and right now I’m having a pool built. While looking at the excavation site, it reminded me of the third step in The Clear Path to Cash program, Mining Your Business for Hidden Cash.
When you look at the inside of a hole in the earth you can see the many layers of dirt, rock and debris that make up the ground. Most of this is hidden from our view when we are looking at the Earth’s surface. You just don’t know what is underneath until you start to dig. You might find rock, or you might find gold.
That’s what we want to do in your business. Determine what’s beneath the surface.
To find the inefficiencies in your business, we look at two different groups of activities.
1. Cash Generating Activities
a. Salesb. Gross Profitc. Net Profit
2. Cash Conversion Activities
a. Inventoryb. Accounts Receivablec. Accounts Payable
Cash generating activities show you how your business attracts money and spends it. Cash conversion activities evaluate the speed that money moves through your business.
The key is to compare your current performance with the one you want to have. Some people compare themselves to the industry average, while others compare themselves to their own business goals. It doesn’t matter which.
I would say however, you should always use the industry average as a minimum standard.
You compare your performance against your goal, then calculate a financial impact.
How much money am I leaving on the table by underperforming?
Once you know that, you also know where to start a plan of action to improve. Look for the biggest financial impact to your business and start there.
If you’d like, you can use my worksheets to get the process started. Just click the link below and download the Mining Your Business for Hidden Cash Worksheet and find out what is just beneath the surface!
Best wishes for success,
Cash Flow Mike
JOIN THE FACEBOOK GROUP TO DOWNLOAD THE WORKSHEET
P.S. Whenever you’re ready… here are 4 ways I can help you improve cash flow in your business:
1. Grab a free copy of my book
The 7 Minute Conversation is a HOW TO book to analyze any company’s financial statements in 7 minutes or less, including a super valuable lesson on expense control. — Download Here
2. Join the Clear Path To Cash – Mining Your Business For Hidden Cash Facebook Community
It’s our new Facebook community where business owners who are using the concepts taught in The Clear Path To Cash, share lessons learned and get advice from my team and each other. — Join The Facebook Group
3. Participate in a Live Virtual Clear Path To Cash Seminar
Some people like self-study and can learn concepts through a book or video series. Others, like me, need to be in a classroom style environment and be walked through the concept. We offer a Virtual Seminar each month. It’s only 3 hours per day for 2 days, and you learn the 8 Steps in The Clear Path to Cash Program. I love this one so much I teach it myself. — Virtual Seminar
4. Work with me and my team privately
If you’d like to go over something outside of a group setting, no problem. All you have to do is click this link to schedule a 15 minute Triage Call. In 15 minutes, we see if my team can help you with your problem. Sometimes we can give you some advice on the spot, other times we will invite you to a longer Burning Issues call, where we dig into the issue a little deeper and give you some great advice. Even if we don’t believe our program is a good fit for you, we try to connect you with the right professional from our network of friends. — Schedule Your Triage Call
Enter the destination URL
Or link to existing content