Cashflow

Our 5th Focus Area

Cashflow

The goal of this section is to develop visible business models that enable your business to grow fast AND generate more Cash, rather than what is normally the reverse case. We make sure your business has the Cash to fuel its growth.

Growth can easily suck up lots of Cash, if not managed properly.

It is crucial we know how long it takes for a dollar to get from Point A to Point B in your business. Point A is where you spend a dollar and Point B is where the dollar has worked its way through your business model and back into your pocket. Think Point A is your left-hand pocket and Point B is your right-hand pocket. Technically, we call this measure, your Cash Conversion Cycle.

Most private businesses place emphasis on their Profit & Loss Report and Balance Sheet Report, but scant regard for a Cashflow Report. The Cashflow Statement is either non-existent or ignored. Our first action in a project is to work with your Financial Controller and get them into a rhythm of producing a daily, weekly or monthly Cashflow Statement. It becomes a key tool for management and decision-making.

We use a sophisticated set of tools to generate more Cash in your business.

Using our driver trees concept, we model how small changes in price, volume, cost of goods sold, overheads, inventories and other key variables, can have a significant impact on your Cash.

We then brainstorm ways on improving your Cash Conversion Cycle.

We also implement several important key performance indicators to drive up your Free Cash.