You and I are seeing more and more CEO and CFO surveys and articles re WHEN, not IF, the economy will turndown and asking how prepared you are.
As you and I know, both in good times and bad times leaders always have a use for more cash. Bluebirds abound when turbulence occurs, for those who can quickly access cash.
Searching through my vault, I found and updated my 7 best tips list on quickly getting more cash. Consider these 7 sure-fire tips on how to improve cash flow and fortify your company’s position in the marketplace.
- Scrutinize and update, (or Obtain) your Rolling Operational Operating Statement.
- Learn which products now have unacceptable margins or even worse, are loss leaders. Determine appropriate tactics, such as to either get rid of them or, at the very least, consider raising prices.
- Ask employees for suggestions. Heed the classic adage, “Ain’t any of us as smart as all of us.”
- Postpone even slash purchases, where possible.
- Review inventory levels using current or reasonably conservative projections by how many days’ sales and adjust outstanding and future orders appropriately.
- Send out all accounts receivable statements monthly AND make collection calls where appropriate.
- Do more with less. There is a reason why this tried-and-true phrase remains tried-and-true.
Ensure you timely and accurately receive the management information reports to easily complete these reviews. What other key information might you be missing? Hard to have too much cash.
Pull this list out every six months to see where and how you can better manage your company’s cash flow.
At best, you will find and correct the inevitable fat and sloppiness which always creeps in during booming times. At worst, you will invest a limited amount of time and effort for which your improved cashflow will thank you.
When the economic climate changes as dramatically and as frequently as it seems to be nowadays, remember that cash is better than king – it rules.
Call now to discuss your situation 678-319-4739.
Thanking you in advance, Gary
Reduces financial risk, strategically aligns companies, and increases profit
I build my business the same way you build yours: by referrals. If you know any growing mid-market companies that would benefit from my services, please send me a note. Thanks!
PS. Helps leaders increase profitability providing access to 100 insider ways to unlock cashflow often better and cheaper than incumbents. Call or email me at 678-319-4739 or gary@FiscalDoctor.com.