March 24, 2025 • 52 mins
In this essential episode, Michael Barbarita reveals powerful strategies to transform your business's cash flow position. While profit looks good on paper, cash is what keeps your business alive. Discover how to identify and fix the hidden cash drains that plague most businesses, implement proven cash acceleration techniques, and create systems that ensure consistent cash flow even during challenging times.
Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).
Powerful Business Strategies Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/powerful-business-strategies--6198916/support.
Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).
Powerful Business Strategies Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/powerful-business-strategies--6198916/support.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or its employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Welcome to Powerful Business Strategies, where you will find out
that everything you have ever learned about growing your business
is wrong. Finally, a show where you'll learn the right
way to grow your business by learning business and financial
strategies that your competition isn't doing. And now here is
your host resident of NeXTSTEP CFO Michael Barbarita, and joining
(00:52):
Michael for today's show as an executive moderator is Chooky Obia.
Speaker 3 (01:00):
Welcome to Powerful Business Strategies and the reason why you
don't hear the more invigorating voice of Chicky o Bo
welcoming you to the show is because Chucky's wife and
Chikey recently welcome their daughter, Chelsea to the world. So
congratulations to Chucky and his wife and Chuky should be
back on the show next week. So in the meantime,
my name is Michael Barberina. I'm president of NeXTSTEP CFO
(01:21):
and Next Step CFO is a fractional CFO and strategic
immitation firm. Business owners hire us to double and triple
that profit using business and financial strategies that their competition
isn't doing. Our vision is to ensure that overwhelmed business
owners achieve the time, freedom, and consistent profits to build
a legacy and the life they desire. Our mission is
(01:45):
dedicated to guiding small business owners to leveraging their time,
exploding their profits, and building a meaningful legacy. The show
Powerful Business Strategies and their book of the same name
as a step toward accomplishing that vision and mission, and
Chooky and I are both affiliated with a number of
different organizations and Chokey currently serves as the managing director
(02:07):
of business development for Better Price, which is a global
business focused law firm, and in addition to that, Chucky
and I collaborate to monitorate business roundtables around the country
and around the world and document those insights as part
of our book Powerful Business Strategies. But please not that
the views expressed on this show are our personal views
(02:28):
based on our own successful experiences. And here's something that
i'd like to share that I've announced previously. If you
have a business problem that you would like us to answer,
a business question or a strategy that you like to
ask about, please email us ask at NEXTSTEPCFO dot net.
That is asked at NEXTSTEPCFO dot net. Doesn't matter what
(02:52):
the business problem is or the question, and we will
answer it for you. And here's but here's a couple
of things that we do. Ask one, please state whether
it is something we can answer on the air or
if it's confidential, And of course if it's confidential, we
won't put it on the air, but we'll respond to you,
but we won't put it on the air. And number two,
please provide your phone number because business problems can be
(03:15):
complex and we might need some additional context or clarity.
That email address again is ask at NEXTSTEPCFO dot net.
And I also want to point out that we've had
a couple of questions but they have requested confidentiality, which
of course we'll always always honor. You know, every successful
(03:36):
business faces moments that test not just its model, but
its leaders resolve. Whether it's watching a key employee walk
out the door with critical knowledge, navigating changing government regulations,
shouldering tax burns that seem to grow heavier each year,
or weathering those inevitable seasons when customers simply start buying.
(04:01):
These moments are not the exception of business. They're the rule.
They're the crucible that separates temporary success from enduring achievement.
What distinguishes extraordinary business owners isn't the absence of these challenges,
but their response when confronted with them. While others see
(04:22):
the parting talent is devastating, they see an opportunity to
strengthen their systems. Where others see regulations as obstacles, they
find ways to turn compliance into competitive advantage. When others
panic during slowdowns, they use the time to innovate and
prepare for the inevitable upturn. Remember this, every significant business
(04:47):
challenge contains within it the seed of an even greater opportunity.
So young job isn't to avoid these challenges, it's to
develop the wisdom to extract the opportunity that they can
the most valuable skill you can develop isn't avoiding problems.
It's becoming the kind of leader who adapts and converts
(05:10):
problems into platforms for unprecedented growth. That transformation begins with
the decision that you won't merely survive these challenges, but
you'll use them to thrive. You know, every day across America, talented,
hard working business owners wake up with a not in
(05:30):
their stomach because they don't have customers. It's not because
they're not delivering value. It's not even because they're not
making a profit on paper. It's because they're worried about
cash flow. They wonder if they'll make payroll this Friday.
They hope that that a big client payment comes in
before the rent is do they juggle which vendor gets
(05:51):
paid this week and which one will have to wait.
But there's a fundamental truth that can transform this daily anxiety.
Cash Flow problems are only sometimes about how much money
your business makes, then mostly about systems, or in some cases,
to lack thereof the most successful business owners I've worked
(06:15):
with weren't necessarily the ones with the highest revenue even
highest profit margins. They were the ones who mastered the
mechanics of cash flow. Today, I want to inspire you
with this powerful reality that, no matter how challenging your
cash position is, right now, with the business systems and strategies,
(06:35):
or with i should say, with the right business systems
and strategies, you can move your business from cash starved
to cash rich. And when you do, you'll not only
eliminate that not in your stomach, but you'll gain the
freedom to make decisions based on opportunity rather than necessity.
(06:57):
That movement from cash starved take cash rich begins today.
So today we're tackling perhaps the most critical aspect of
running a successful business, mastering your cash flow. And let
me start with the stock reality. According to a US
bank a study, they did eighty two percent of business
(07:21):
failures due to poor cash flow management, not lack of profit,
lack of cash. You can be profitable on paper and
still go out of business if you're run out of cash.
And as a fractional CFO and strategic implementer who has
worked with hundreds of businesses across dozens of industries, I've
(07:42):
seen firsthand how cash flow problems can cripple otherwise successful companies.
But I've also seen how the right cash flow strategies
can change struggling businesses if the thriving enterprises with substantial
cash reserves. So today we're going to explore proven strategies
(08:04):
to master your cash flow strategies that work regardless of
your industry, regardless of business size, or regardless of current
financial position. In our first segment, will identify the twelve
most common cash flow killers that plaque small and medium
sized businesses, from inventory management issues to pricing problems too, accounts,
(08:26):
receivable challenges, and more pointantly, we'll show you how to
diagnose each of these issues and how they might be
impacting your business right now. In the second segment will
dive deep into practical cash acceleration strategies. We'll talk about
specific techniques to get your get cash into your business faster,
(08:47):
also manage outflows more effectively, and create a consistent, predictable
cash flow pattern even in seasonal or project based businesses.
And finally, in our third segment, we'll explore how to
create robust cash flow systems that not only solve immediate
cash challenges, but build long term cash reserves that provide
(09:12):
both security and strategic advantages. So I just want to
point out something else too, because I said a little
just a second ago about even if you're in a
seasonal business. Well, if you recall, I was in the
ski business, and what could be more seasonal. And as
a matter of fact, we closed in the off season.
(09:35):
We shut the doors because we were a specialty ski
store and skis was our game, and we didn't sell
aqua lungs in the summertime. But at any rate, we
never needed to use our line of credit. We had one,
it was Foune grant, but we never needed it. We
(09:55):
never needed to use it in the off season. We
had enough cash reserves built up to finance our summer
and so, and those strategies that we're going to talk
about today are the strategies that I used in order
to not even touch the line of credit that I
had in a seasonal business. And what makes this show
(10:18):
particularly valuable is that most business owners only focus on
cash flow when they're already in crisis mode. But the
business that the businesses that truly excel are those that
implement proactive cash flow management systems before problems arise. And
(10:38):
these businesses have the flexibility to these opportunities, to weather
unexpected challenges and to make decisions based on strategic goals
rather than immediate cash pressures. Big difference, and whether you're
currently struggling with cashblow challenges or simply want to optimize
(10:59):
your already stated position, the strategies will share today can
help you build a stronger, more resilient business because remember,
it's not just about surviving, it's about creating that financial
foundation for exceptional growth. So grab that pen and paper
because the insights you'll gain today could be worth tens
(11:19):
or even hundreds of thousands of dollars to your bottom
line and more importantly, today your cash position. And if
you're driving, certainly don't grab that pended paper, but listen
to our replay at Powerful Business Strategies dot com. So
let's dive into the first critical component of mastering your
(11:41):
cash flow, and that is identifying and addressing the common
cash flow killers that might be draining your business. Cashflow
problems are caused by specific issues that can be systematically
identified in things. So let me walk you through some
of those cash flow killers that we see across businesses
of all types and sizes. The way in the first
(12:01):
major cash flow killer is too much inventory. You know,
a great retailer in Massachusetts his name was Roger, Butchika
once said, the less inventory you buy, the more money
you make. And what Roger meant was is that too
much inventory can put you out of business quickly. And
this is the biggest mistake retailers make. It's overbuying, and
(12:25):
over buying not only kills retailers, by the way, it
kills distributors who overbuy product and manufacturers who overproduce. You know,
I once had a client in the distribution business well,
because of a promotion that didn't meet sales expectations, was
sitting on a seven year supply of a particular product.
(12:48):
Now we've got an offer of fifteen thousand dollars to
move this inventory. But it did and it cost my client.
That remaining inventory did cost my clients thousand dollars. So
sixty thousand dollars that cost was sitting there and we
got a fifteen thousand dollar offer. My suggestion was to
take the fifteen thousand dollars and reinvest it in fresh,
(13:12):
fast moving inventory that was turning over eight times per
year at a forty percent profit. Monitule by doing this
instead of tying up sixty thousand an inventory that would
take seven years to move, they generated an additional two
hundred thousand cash flows that year through the reinvestment of
that fifteen thousand in the fast moving product. This is
(13:37):
really really important, by the way, because there are several
factors why we business owners don't pull the trigger on
situations like this. Now, they would have never generated that
much cash waiting for that slow moving stuff to sell,
not a million years. And this illustrates a fundamental principle
because of the inventory turnover of more productive inventory, it
(13:59):
pays to cut your losses and get rid of that
slower moving inventory. So getting a question from a listener,
so the question is how can business owners determine the
right inventory levels for their specific business to avoid this
(14:21):
problem in the first place. Well, that's a great question.
The key is implementing what I call an inventory intelligence system,
and that's a systematic approach to the management of inventory
and is start by categorizing your inventory into A, B
and C items based on sales velocity and profit contribution.
(14:44):
So your A items, typically the top twenty percent that
generated eighty percent of your profit, should never be out
of stock and require type management for these items. Calculate
your optimal reorder point by multiplying your average daily sales
by your supplier lead, then add a safety stock factor
based on sales buriability. For B and C items, you
(15:07):
can be more conservative with stocking levels. Review these calculations
quarterly as sales patterns change from time to time, but
most importantly, implement a regular, slow moving inventory review to
identify and liquid date items before they become seventy year supplies.
Excuse the reference to the last example. So here's the
(15:28):
other thing. We need to check our egos at the door.
All of us, we business owners, never want to admit
that we made a buying mistake. It's probably one of
the biggest reasons why we hold on inventory, and as
a result, we keep the inventory way too long. My
client would have kept that inventory. We all have purchased dogs,
(15:53):
no matter how great our buying skills are. We all
have purchased dogs. Let's let's admit that they're dogs as
soon as we possibly can, instead of hoping and praying
that our dogs are really great anyway. The second major
cash flow killer, I hate to say it. It bothers
(16:17):
me to say it, but it's the owner's taking too
much salary or making too many withdrawals. This one hits
home hardest. The business is doing well, and as a result,
the owner increases their personal lifestyle, not necessarily too extravagantly,
but by the way, but more than the business can
afford if there is a downturn, and so while the
(16:39):
business is doing well, it's not really feeling the effects
of the additional salary that the owner is taking. And furthermore,
the owner feels entitled to it. I don't blame them
to a larger salaries. They probably took a smaller salary
while building up the business. The problem comes when the
business has a downturn and the owner can't adjust their
salary to look to a lower level, primarily due to
(17:01):
an increased personal lifestyle. So, unfortunately, there's only one way
to manage this kind of situation. It takes discipline, and
you determine a conservative salary, one that can be handled
during a down you know, a ten fifteen to twenty
percent downturn, and then when good years occur, you take bonuses.
(17:21):
That way, when bad years occur, the business isn't stringed
due to the owner's salary. Another major cash killer is
doing business with customers who are slow paying or don't
pay at all. Oh god. I've had clients continue doing
business with customers who are just slow paying because they
know them personally, or they've been they've been customers for
(17:44):
one hundred years, or because you know, business is bad
and they need to keep people working, so they take
on these these clients who just don't These customers are
clients that just don't pay. This is a very bad
business practice. You know, had client when one hundred and
fifty thousand and over ninety day receivables from slow moving
(18:05):
customers out of a two hundred and fifty thousand total
receivable balance. We immediately put all these customers in collection
and refuse to do business with them in the future. Now,
some of these customers still came back to us, but
we required them to pay cod and overall collections improved
dramatically afterwards. You just got to put your foot down
(18:27):
at some point. So establishing a system of collecting accounts
receivable so that your strategy is consistent and timely is
really important. This is when we go back to systems.
For example, for an invoice with terms of thirty days,
contact the customer between the thirty fifth and fortieth day.
The customer doesn't return your call. You're not satisfying with
(18:48):
their answer, send them a ten day demand letter. This
is from you now. Now I have a template for
this letter and I can give it to you if
you send an email to ask at NEXTSTEPCFO dot Nexlet's
ask at NeXTSTEP CFO dot net and I'll send your
reply with that template. But the past two isn't paid
(19:09):
within that ten days, you have to put them in collection.
And I know this is a big deal for a
lot of business owners, but this system works. It just
plain works. You have to get tough with some of
these people. The next major cash killer is having overhead
that's too high. Now in most businesses, the largest expenses
are rent, payroll, advertising, and insurance, and focusing on managing
(19:32):
these expenses will give you the biggest bang for the buck.
And for rent, even if you have a lease that
you're committed to, you can often renegotiate the terms. Not
all the time, I get that, but you can. Most
landlords understand cash flow problems that don't want to lose tenants.
I've done this before. Show them your financial statements. This
is before you're in default. Okay, you're still making You
(19:57):
made that last payment that you've think that that's the
last payment you're going to be able to make in
the next several months, show them your financial statements, demonstrate
what concessions you need, and explain how you're going to
pull through the difficult times. But here's the thing you
have to I'll say it again, renegotiate with the landlord
when it's clouding, not when it's raining. In other words,
(20:22):
be proactive. And how can you be proactive? You have
a business and cash flow forecast. So for payroll, there's
usually always a way to cut, whether by laying off
under performing employees or reducing hours. You know a retail
changing store opening and closing hours can sometimes allow for
(20:43):
a single eight hour, eight to nine hour shift instead
of multiple ships. When I was in the ski retail business,
you know our operation, our hours of operation were new
to nine. Let's says a ton of payroll. Customers never complained.
And for advertising, while I don't like cutting it, there
are ways to reduce costs dramatically impacting sales by reducing
(21:05):
ad sizes, changing from four color to two color printing,
or focusing more on digital strategies with better ROI and
better metrics tracking, and by using small budgets to test
different messaging. You can test for as little as five
dollars a day on Facebook, by the way, and for insurance,
get multiple quotes from multiple providers, or get quotes from
(21:28):
multiple providers. Your commercial insurance carriers get very competitive. They
can usually shop in their pencils on general liability policies,
but usually they don't shop at your pencils their pencils
unless you ask. So if you and the other thing
is is if you have an umbrella policy, you have
to reassess whether you truly need it. I had a
client who had an umbrella policy that was costing him
(21:50):
seventeen grade a year, and the only reason why he
had that umbrella policy was so we can make bids
on government jobs that required the umbrella coverage. In the
three years leading up to the time he hired me,
he was never ever successful on any government bid, so
(22:11):
we dropped the umbrella. The next major cash killer is
too much debt. You know, debt will kill you if
it's successive. And if that is killing you, it's time
to renegotiate terms. And I don't care if it's with
a bank, if it's with the SBA, If I don't
know if it's with a private let, I don't care
who's with. The key is, though, is to have good
relationships with them all the time. I call it feeding
(22:34):
your banker, both literally by taking them to lunch and
figuratively by constantly communicating with them about your business. Because
if you do that, over time, they get a better
understanding of your business, so that when you come to
them with all with problems due to a bad economy
(22:54):
and so forth, they understand how you're going to get
out of it, instead of you having to stop from
score and explaining your business over and over again to
these people. So be having good communication with a banker.
And if your banker leads, you have to you know,
you have to reignite the relationship with the new banker,
because bankers leave all the time, I get it. Areas
(23:16):
to negotiate, by the way, include interest rate reductions, extending terms,
switching into interest only payments, turning out lines of credit,
so there's a number of ways to renegotiate. The next
major cash killer is under capitalization. From the beginning, I've
never seen an entrepreneur, including myself, by the way, accurately
(23:37):
estimate cash required for a brand new venture. Once the
vention's going, we're really good at that. Before the fact,
we're a little we're a little tough. The inherent optimism
of we entrepreneurs automatically seems to dictate that cash needs
will be underestimated. So, because entrepreneur is always under estimate
(23:58):
cash needs, the search for money needs to be consistent
and continuous, and it's wise to take the money you
think you need and double it. I need to say it,
but that's the truth. So here's a question. Yeah, here's
a question from a listener. You've covered six major cash killers.
Which of these you find is the most overlooked by
(24:19):
business owners and why? Well, the most overlooked cash killer
is definitely slow paying customers. And most business owners they
understand inventory issues, they're cautious about debt, but they're surprisingly
surprisingly tolerant of customers who pay slowly or inconsistently, and
there's often an emotional component. They feel uncomfortable in forcing
(24:42):
payment terms with long standing relationships or or either they're
going to lose the customer if they're too strict. You know,
the customer agreed to terms, so you know, not being
too strict. But what business owners don't realize is that
every day of payment is late essentially means they're extending
and interest free loan to that customer. What manufacturing client
(25:06):
we worked with had over four hundred grand and receivables
beyond sixty days. That's four hundred grand they couldn't use
for growth, For under grand they couldn't use for debt
reduction or other strategic purposes. When we implemented a strategic
collection process, they recovered over eighty five percent of those
funds within ninety days, dramatically improving their cash position without
(25:28):
losing a single valuable customer. The lesson here is professional
payment enforcement actually improves customer relations by setting clear expectations
and putting you at the top of the list instead
of the bottom of the list with some of the
Lacklusser other vendors. Here's another question coming in for a
(25:53):
business owner who identified several of these cash killers in
their operation. How would you recommend how you prioritize them,
which ones to address first? Well? I recommend using what
I call the cash flow impact matrix. This involves assessing
each issue, each issue based on two factors, how quickly
can be addressed and how significant the cash impact will be.
(26:16):
For example, negotiating with slow paying customers can often generate
substantial cash within thirty to sixty days, while renegotiating a
lease might take longer but provide ongoing monthly savings. So
start with the quick wins, the issues that can be
addressed rapidly and with significant cash impact. Typically this means
(26:38):
focusing on accounts, receivable and inventory issues which can offer
free up substantial cash within thirty to ninety days when
you address them as we discussed. Then move to expense
reductions that don't require complex negotiations, are restructuring, and finally
tackle the longer term structural issues like debt restructure. The
(26:59):
key is since to build momentum with early successes that
generate cash, which gives you more flexibility to address the
more complex issues. Remember this is about implementing perfect solutions.
It's about systematic improvement that compounds over time. So before
I continue this discussion, we're going to take a ninety
(27:21):
second break. Hey there, business owners, let me ask you something.
Are you tied of blending in with your competitors? Frustrated
with slow growth and slim margins? Well, I've got news
for you. Everything you've ever learned about growing your business
is wrong, don't worry. I'm here to let you in
on a secret weapon, your position of market dominance. It's
(27:44):
what sets you apart, makes you irreplaceable, and has customers
lining up at your door. My name is Michael Barberrita
from NeXTSTEP CFO. I know what you're thinking. Sounds great, Michael,
How do I find my position of market dominance? Well,
that's exactly why we've created our game changing implementation program
called Next Step to Market Dominance. In just ninety days,
(28:07):
we'll guide you step by step to a position of
market dominance by uncovering your unique strengths that competitors can't touch,
by crafting a message that resonates deeply with your ideal customer,
by building a strategy that turns you into the go
to expert in your field. Now this is in theory.
These are battle tested strategies that have held businesses like
yours double triple and quadruple their revenue. Don't let another
(28:32):
quarter go by struggling to standout. It's time to dominate
your market. Period. Go to NEXTSTEPCFO dot net, forward slash contact,
fill out the form and in the message section put
the word dominate or call us at seven eight one
three two six three A two two. That's next STEPCFO
(28:53):
dot net forward slash contact or call us at seven
eight one three two six three A two two. Welcome back. Now,
let's explore the second critical component of mastering your cash flow,
and that's practical strategies to accelerate cash into your business
and then manage the outflows more effectively. So cash acceleration
(29:16):
is about more than just collecting payments faster. It's about
redesigning your entire business model to optimize the cash in
and out of your business. So let's explore some proven
strategies that can transform your cash position within thirty to
ninety days. But first let's focus on strategies to get
money into your business faster. So number one is optimize
(29:37):
your payment terms. The traditional model of doing work and
then invoicing with thirty day terms can create significant cash
flow gaps, so consider these alternatives. Upfront deposits or retainers
for service businesses that require Some service businesses require twenty
five to fifty ten payment for a start before starting
(29:59):
the work. I think you have to consider some type
of deposit or retainer before doing the work. Progress billing
for longer projects at specific milestones rather than waiting until completion.
For subscription models, convert one time purchases into reoccurring revenue streams. Also,
(30:20):
you can have discounts upfront. For example, if you have
a monthly subscription, if they pay it a year, you
could take a couple of percent off to the summation
of the twelve month subscription. Payments shortened payment terms, so
consider fifteen day terms instead of thirty. You know consulting
firm was struggling with cash flow despite being profitable, but
(30:44):
by simply changing from one hundred percent payment after project
completion to a model of fifty percent up front and
fifty percent on completion, they eliminated their cash flow problems
within sixty days. The second thing you should do is
streamline your billing process. So many businesses create unnecessary delays
in their own cash cycle through inefficient billing, So you
(31:07):
have to invoice immediately upon delivery or service completion, not
wait month in Second, use electronic invoicing rather than paper bills. Third,
implement clear detailed invoices that prevent payment delays due to questions.
Offer multiple payment methods, particularly electronic options, and set up
(31:30):
automatic payment reminders. You know a manufacturing company reduce their
average collection time from forty seven days to thirty one
days by implementing automated same day invoicing and electronic payment options.
This sixteen day improvement released over four and grand cash
that have been tied up in receivables. Oh, we got
(31:53):
a question already, a question from a listener. These strategies
make sense for services is but what about retail or
other businesses where payment is typically received at the time
of purchase? How can they accelerate cash flow? Good question,
So retail and point of sale businesses, they need to
(32:14):
focus on different acceleration strategies. So first, optimize your inventory
turn rates. The faster the inventory turns, the better your
cash flow. So implement just in time inventory systems where
wherever possible, and use data analytics to predict seasonal needs
more accurately, and then negotiate better supplier terms. Even extending
(32:36):
from NET thirty to NET forty five can significantly improve
cash position. Third, consider deposit systems for customer orders rather
than ordering products without a customer commitment another way. Fourth,
review your payment processor arrangements. Even a half percent reduction
and processing feeds, adds up substantially, and finally, especially if
(33:00):
retail by the way, and finally, create opportunities for prepaid
packages or gift cards, which provide immediate cash for services
delivered later. One retailer increase their cash position by one
hundred and twenty grand in ninety days through these models
without changing their core business model. So the first cash
(33:20):
acceleration strategy was optimizing your payment terms. A second was
streamlining your billing. The third is implement strategic collection processes.
Don't leave collections to chance or or inconsistent effort. Develop
a systematic, multi touch collection process that starts before the
(33:41):
invoice is due. So segment your customers based on payment
history and tailor your approach accordingly. A signed specific team
members responsibility for collections. Consider early payment discounts. So if
you have a thirty day invoice, if somebody pays in
ten days, give two percent but they don't let them cheat.
(34:02):
Don't let them cheat. I've seen a thousand times where
customers will pay they'll take the discount after paying in
fifteen days. Don't let them do that. Use technology to
automate much of the process. A distribution company implemented a
(34:22):
graduated collection system that included automatic email reminders that seven
days before the due date, then again on the due date,
and then seven days pass the due date, followed by
personal calls and then demand letters for anything beyond that.
Their pass receivables drop from thirty two to eight percent
within ninety days. I mean, it's just, it's just you've
(34:42):
got to do the work here and then leverage your
financial products strategically. Various financial products can help bridge temporary
gap temporary cash flow gaps. So like business lines and
credit secure these when cass blow is good, not when
(35:03):
you're already in trouble, You'll never get it. If you're
in trouble, you've got to build up your lines of
credit and always manage that. You know, if today you
have one hundred thousand dollars line of credit and you
still have it gone into it, you know, apply for
one hundred and fifty or two hundred. It'll help when
times get tougher. It's really important to do that. When
(35:26):
I was at Ski Town, we started with one hundred
thousand dollars line of credit. We ended up with four hundred.
We never used it. But that doesn't mean I don't
keep from trying to increase it. Invoice factoring, sell your
receivables at a discount for immediate cass. This is if
you have to inventory financing, use inventory as collateral for
short term funding banks. We'll loan on inventory supply chain financing.
(35:51):
Arrange for your customer banks to pay you immediately while
extending credit to them. One am my clients secured a
tw hundred and fifty thousand dollars line of credit when
their business was strong. A year later, when a major
customer delayed substantial payment, they were able to draw in
the line. Rather than missing payroll or delaying vendor payments,
(36:11):
or ending up with that not in their stomach. That's
prevented as short term cash fronts before becoming a crisis.
Now let's turn to strategies for managing outflows. Optimize your
vendor payment strategies, so how and when you pay significantly
impacts your cash position. So negotiate extended terms with key
(36:32):
suppliers forty five to sixty days instead of thirty. When
I was in the ski business, sometimes I got six
month terms. I've taken the inventory in February and I
don't have to pay it till October. I don't even
know how many months that is, but I think it's
more than six months. Consul and they'll do that if
you're a good customer and if you pay on time,
(36:54):
whatever the terms are. Consolidate vendors to gain better terms
to higher volume. Set up that's buying group stuff, you know.
Consider joining buying groups. Set up a systematic payment system,
a schedule rather than paying bills as they arrived. Consider
the strategic use of credit cards for certain expenses to
(37:15):
extend payment timing. I mean you can. You can take
thirty day terms and make them fifty if you're paying
a credit card. Think about that. Implement approval processes for
all expenditures above a certain threshold. A service business negotiated
extended payment terms with their top five vendors, resulting in
(37:36):
immediate seventy five grand improvement in their cast position without
any change in their operation or any revenue shift or anything.
Implement zero based expense reviews, so rather than incrementally adjusting
last year's budget, stop from zero. Require every expense to
(37:57):
be justified based on current business needs. Remember what I
said last week. You cut the expense if the expense
doesn't help you acquire a customer, if the expense doesn't
help you retain a customer, if the expense doesn't help
increase the long term valuable customer, and if the expense
doesn't help deliver your product or service to a customer.
(38:19):
Evaluate subscriptions and recurring expenses that this is a huge area.
Watch your credit card bill and look at these subscriptions
you're not using. Implement the rule of three get three
quotes for any significant expense. We already talked about that
for insurance. This thing was between essential and non essential spending,
and create formal approval processes for any new recurring expenses.
(38:46):
Then you can manage capital expenditures strategically. That's another area.
So major purchases can significantly drain cash if not managed properly.
So consider leasing versus buying for equipment that appreciates quickly.
We have formulists to show you which is better. Implement
a formal ROI return on investment analysis for our capital expenditures.
(39:10):
What's the payback of your capital expenditure? That's another metric
that's really important when looking at capital expenditures. Explore vendor
financing options. Create a capital expenditure reserve fund during strong
months manufacturing company was planning to purchase three and a
grand in equipment. By renegotiating a lease to own arrangement instead,
(39:33):
they reduced their initial cash outlay by eighty five percent
while preserving their working capital for operational needs. Here's a
question from a listener. Yeah, you shared many strategies for
accelerating cash flow, and for business owners who are already
(39:55):
feeling overwhelmed, what would be the one cash flow acceleration
strategy with the highest impact to effic ratio? Well, byat
to identified the highest level leverage strategy, it would be
implementing a systematic technology enabled invoicing and collection process. Period
Most businesses have leakage in their collections and they send
(40:18):
out invoices late. Their follow up is a consistent there's
no clear path when pay and you know when payments
are delayed. And by setting up automations for these things,
you will see incredible efficiency. Another question it is many
business owners worry about implementing stricter cash blow management by
(40:38):
damage relationships with customers or vendors. How do you recommend
balancing cash flow optimization with maintaining good business relationships. Well,
that's a crucial concern, but you stop by being transparent
and proactive in businesslike when changing payment terms, give advanced
notice and explain to the business of reasons. Frame collections
(40:58):
as a customer service function. For example, we're reaching out
to ensure everything was satisfactory with your order and to
confirm your invoice was received. I'm sorry to confirm our
invoice was received. For vendor relationships, don't just demand better terms.
Look for mutual benefits, perhaps offering faster payment on a
portion of invoices in exchange for extended terms. On the balance,
(41:23):
the most important principle is consistency. When your policies are clear, consistent,
and professionally communicated, they actually strengthen relationships by setting proper expectations.
So before I continue this discussion, we're going to take
a ninety second break. Hey, dear business owners, let me
ask you something. Are you tied of blending in with
(41:45):
your competitors? Frustrated with slow growth and slim margins? Well,
I've gotten news for you. Anything you've ever learned about
growing your business is wrong. Don't worry. I'm here to
let you in on a secret weapon. Your position of
market dominance. It's what sets you apart, makes you irreplaceable
and has customers lining up at your door. My name
(42:08):
is Michael Babarrita from Next Step CFO. I know what
you're thinking. Sounds great, Michael, How do I find my
position of market dominance? Well, that's exactly why we've created
our game changing impleentation program called Next Step to Market Dominance.
In just ninety days, we'll guide you step by step
to a position of market dominance by uncovering your unique
(42:30):
strengths that competitors can't touch. By crafting a message that
resonates deeply with your ideal customer, by building a strategy
that turns you into the go to expert in your field.
Now this is in theory. These are battle tests and
strategies that have helped businesses like yours double, triple, and
quadruple their revenue. Don't let another quarter go by struggling
(42:52):
to standout. It's time to dominate your market. Period. Go
to NEXTSTEPCFO dot net forward slash contact. Fill out the
form and in the message section, put the word dominating
or call us at seven eight one three two six
three A two two. That's next Step CFO dot net
forward slash contact or call us at seven eight one
(43:15):
three two six three A two two. Welcome back. So
let's focus down on the third critical component of mastering
your cash flow, and that's building robust systems that create
long term cash flow predictability and security. While addressing of
media cash flow issues is important, creating sustainable cash management
(43:36):
systems is what really moves the need from perpetually being
cash stressed to consistently being cash rich. So let's explore
the key systems that create this improvement. First, let's talk
about implementing a thirteen week rolling cash flow forecast. This
is perhaps the most single most powerful tool for proactive
(43:56):
short term cash management, and unlike annual budgets or even
monthly forecasts, a thirteen week cash flow forecast gives you
detailed week by week. That's why I said short term
earlier projections, week by week of exactly what cash will
be coming in and going out of your business. And
here's why this timeframe is so powerful that thirteen weeks
(44:19):
it's long enough to identify potential cash crunches before they occur,
it's short enough to forecast with reasonable accuracy. It captures
both immediate operational realities and longer term trends and it
enables you to test the cash impact of decisions before
you make them. The key elements of a thirteen week
cash will include beginning balance of projected cash receipts based
(44:44):
on receivables and sales forecasts, projected cash disbursements categorized by
tight your anti cash balances, available credit facilities, and total
liquidity position. But what makes this tool particularly powerful is
that it's updated weekly on a rolling basis. This means
you're always looking forward thirteen weeks, continuously refining your projections
(45:06):
based on actual results. I worked with a construction company
that was perpetually in cash crisis despite having profitable projects,
and by implementing a thirteen week cash rolling cash flow forecast,
they identified that they had a reoccurring cash crunch every
quarter when certain income tax payments came due, and this
(45:30):
insight allowed them to set aside cash in anticipation of
these predictable obligations, rather than being caught by surprise each time.
Quick question here from a listener that would take this
thirteen week cash flow forecast sounds good, but it also
seems like it might require significant time and expertise to maintain.
(45:53):
How can a busy business owner implement this without it
becoming overwhelming. Well, that's an important practical consideration. Key is
starting simple and leveraging technology. So begin with a basic
template that captures your major cash inflows and outflows without
getting lost in minor details. And many accounting software platforms
(46:14):
now offer cash flow projection features that can automate much
of the process, and for businesses without this capability, even
a straightforward Excel spreadsheet can work effectively. The critical part
is establishing a weekly rhythm. Perhaps every Monday morning, you know,
we update actuals from previous weeks and adjust projections for
(46:35):
the coming week. You know. This typically takes thirty to
sixty minutes. Once the system is established, the time investment
is minimal compared to the return, quite frankly, and we
do this as well by the way we prepare. I
prepare cash flow forecasts for two or three clients right now,
(46:55):
I think, I think it's two. I prepare this and
I meet with her every week on it, every Monday.
The second critical system is implementing cash flow KPI. So
ito's a key performance indicators that give you early warning
of potential issues. And while thirteen week cashflow thirteen week
forecast looks forward. These KPIs help you understand your current
(47:20):
cash position with greater clarity, and the key KPIs will
be the cash conversion cycle, which is how long it
takes to confer investments in inventory and other resources into
cash from sales. The second one is the day's sales outstanding,
(47:41):
which is the average number of days it takes to
collect a payment after a sale. Days payable of standing
is the average number of days you take to pay
your vendors. And inventory days is the average number of
days inventory sits before being sold. So think about this.
You know the average number of days it takes to collect,
(48:02):
you know the average number of days your inventory sits
before being sold, and if you know the average number
of days it takes to pay your vendors, add up
those three averages. That's essentially your cash conversion cycle that
I mentioned at the first step. And by tracking these
metrics consistently, you can identify trends before they become problems.
(48:28):
For example, if your day sales outstanding is steadily increasing,
you know your collection process needs attention before it creates
a serious cash shortage. Okay, so let me recap what
we talked about today, because I am running out of time,
(48:49):
so as we wrap up today's discussion on mastering your
cash flow, let's summarize some of the key strategies we've
come for transforming your business from cash stock to cash reds. First,
we explained to common cash blow killers that drain businesses
of their lifeblock from excess inventory and inappropriate owner compensation
(49:09):
to slow paying customers at high overhead. We emphasize that
identifying these issues isn't about assigning blame, but about diagnosing
the specific causes of cash res trade so they can
be systematically addressed. Remember, cash flow problems are really about
how much money a business makes, They're about systems a
lock thereof. Second, we come with practical cash acceleration strategies
(49:34):
that can transform your cash position from thirty to ninety days.
I'm sorry, transform your cash position within thirty to ninety days.
We discussed optimizing payment terms, streamlining your billing process, implementing
strategic collection systems, and leveraging financial products effectively. We also
exploit strategies for managing cash flows more intelligently from vendor
(49:57):
payment optimizations, zero based expense reviews, strategic capital expenditure management,
and the key insight here is that small improvements across
these multiple areas they compound on each other. Third, we
examine the robot systems that create long term cash predictability
and security. We've discussed the power of the thirteen week
(50:18):
rolling cashblow forecast and the importance of tracking key cashblow KPIs,
establishing a consistent management cash blow management rhythm, and creating
cash flow buffers. So as we leave the show today,
I encourage you to take these three specific actions. Number One,
(50:39):
conducted honest assessment of which cash blow killers are president
in your business. Implement at least one cash flow acceleration
strategy in the next seven days, and begin building your
thirteen week cash blow forecast immediately. Remember, cash flow mastering
isn't about luck or even about how much revenue your
business generates. It's creating intentional systems that optimize the cash
(51:04):
the flow of cash in and out of your business.
And when you do this consistently, that not in your
stomach that I mentioned at the beginning of our show
begins to dissolve and replace by confidence that comes from
true financial clarity and control. To get a copy of
the book Powerful Business Strategy, simply go to our website
(51:25):
www dot NEXTSTEPCFO dot net. It's totally complimentary and until
next Monday at New Easton time for Chucky Obio. My
name is Michael Barberita, and remember, don't keep doing what
your competition is doing.
Speaker 2 (51:42):
You have been listening to powerful business strategies finding out
that everything you ever learned about growing your business is wrong.
Tune in next week and every week at noon Eastern
time on W four CY Radio with your host, Michael
Barberita of Next Step CFO and moderate or Chugi Obio
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or its employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Welcome to Powerful Business Strategies, where you will find out
that everything you have ever learned about growing your business
is wrong. Finally, a show where you'll learn the right
way to grow your business by learning business and financial
strategies that your competition isn't doing. And now here is
your host resident of NeXTSTEP CFO Michael Barbarita, and joining
(00:52):
Michael for today's show as an executive moderator is Chooky Obia.
Speaker 3 (01:00):
Welcome to Powerful Business Strategies and the reason why you
don't hear the more invigorating voice of Chicky o Bo
welcoming you to the show is because Chucky's wife and
Chikey recently welcome their daughter, Chelsea to the world. So
congratulations to Chucky and his wife and Chuky should be
back on the show next week. So in the meantime,
my name is Michael Barberina. I'm president of NeXTSTEP CFO
(01:21):
and Next Step CFO is a fractional CFO and strategic
immitation firm. Business owners hire us to double and triple
that profit using business and financial strategies that their competition
isn't doing. Our vision is to ensure that overwhelmed business
owners achieve the time, freedom, and consistent profits to build
a legacy and the life they desire. Our mission is
(01:45):
dedicated to guiding small business owners to leveraging their time,
exploding their profits, and building a meaningful legacy. The show
Powerful Business Strategies and their book of the same name
as a step toward accomplishing that vision and mission, and
Chooky and I are both affiliated with a number of
different organizations and Chokey currently serves as the managing director
(02:07):
of business development for Better Price, which is a global
business focused law firm, and in addition to that, Chucky
and I collaborate to monitorate business roundtables around the country
and around the world and document those insights as part
of our book Powerful Business Strategies. But please not that
the views expressed on this show are our personal views
(02:28):
based on our own successful experiences. And here's something that
i'd like to share that I've announced previously. If you
have a business problem that you would like us to answer,
a business question or a strategy that you like to
ask about, please email us ask at NEXTSTEPCFO dot net.
That is asked at NEXTSTEPCFO dot net. Doesn't matter what
(02:52):
the business problem is or the question, and we will
answer it for you. And here's but here's a couple
of things that we do. Ask one, please state whether
it is something we can answer on the air or
if it's confidential, And of course if it's confidential, we
won't put it on the air, but we'll respond to you,
but we won't put it on the air. And number two,
please provide your phone number because business problems can be
(03:15):
complex and we might need some additional context or clarity.
That email address again is ask at NEXTSTEPCFO dot net.
And I also want to point out that we've had
a couple of questions but they have requested confidentiality, which
of course we'll always always honor. You know, every successful
(03:36):
business faces moments that test not just its model, but
its leaders resolve. Whether it's watching a key employee walk
out the door with critical knowledge, navigating changing government regulations,
shouldering tax burns that seem to grow heavier each year,
or weathering those inevitable seasons when customers simply start buying.
(04:01):
These moments are not the exception of business. They're the rule.
They're the crucible that separates temporary success from enduring achievement.
What distinguishes extraordinary business owners isn't the absence of these challenges,
but their response when confronted with them. While others see
(04:22):
the parting talent is devastating, they see an opportunity to
strengthen their systems. Where others see regulations as obstacles, they
find ways to turn compliance into competitive advantage. When others
panic during slowdowns, they use the time to innovate and
prepare for the inevitable upturn. Remember this, every significant business
(04:47):
challenge contains within it the seed of an even greater opportunity.
So young job isn't to avoid these challenges, it's to
develop the wisdom to extract the opportunity that they can
the most valuable skill you can develop isn't avoiding problems.
It's becoming the kind of leader who adapts and converts
(05:10):
problems into platforms for unprecedented growth. That transformation begins with
the decision that you won't merely survive these challenges, but
you'll use them to thrive. You know, every day across America, talented,
hard working business owners wake up with a not in
(05:30):
their stomach because they don't have customers. It's not because
they're not delivering value. It's not even because they're not
making a profit on paper. It's because they're worried about
cash flow. They wonder if they'll make payroll this Friday.
They hope that that a big client payment comes in
before the rent is do they juggle which vendor gets
(05:51):
paid this week and which one will have to wait.
But there's a fundamental truth that can transform this daily anxiety.
Cash Flow problems are only sometimes about how much money
your business makes, then mostly about systems, or in some cases,
to lack thereof the most successful business owners I've worked
(06:15):
with weren't necessarily the ones with the highest revenue even
highest profit margins. They were the ones who mastered the
mechanics of cash flow. Today, I want to inspire you
with this powerful reality that, no matter how challenging your
cash position is, right now, with the business systems and strategies,
(06:35):
or with i should say, with the right business systems
and strategies, you can move your business from cash starved
to cash rich. And when you do, you'll not only
eliminate that not in your stomach, but you'll gain the
freedom to make decisions based on opportunity rather than necessity.
(06:57):
That movement from cash starved take cash rich begins today.
So today we're tackling perhaps the most critical aspect of
running a successful business, mastering your cash flow. And let
me start with the stock reality. According to a US
bank a study, they did eighty two percent of business
(07:21):
failures due to poor cash flow management, not lack of profit,
lack of cash. You can be profitable on paper and
still go out of business if you're run out of cash.
And as a fractional CFO and strategic implementer who has
worked with hundreds of businesses across dozens of industries, I've
(07:42):
seen firsthand how cash flow problems can cripple otherwise successful companies.
But I've also seen how the right cash flow strategies
can change struggling businesses if the thriving enterprises with substantial
cash reserves. So today we're going to explore proven strategies
(08:04):
to master your cash flow strategies that work regardless of
your industry, regardless of business size, or regardless of current
financial position. In our first segment, will identify the twelve
most common cash flow killers that plaque small and medium
sized businesses, from inventory management issues to pricing problems too, accounts,
(08:26):
receivable challenges, and more pointantly, we'll show you how to
diagnose each of these issues and how they might be
impacting your business right now. In the second segment will
dive deep into practical cash acceleration strategies. We'll talk about
specific techniques to get your get cash into your business faster,
(08:47):
also manage outflows more effectively, and create a consistent, predictable
cash flow pattern even in seasonal or project based businesses.
And finally, in our third segment, we'll explore how to
create robust cash flow systems that not only solve immediate
cash challenges, but build long term cash reserves that provide
(09:12):
both security and strategic advantages. So I just want to
point out something else too, because I said a little
just a second ago about even if you're in a
seasonal business. Well, if you recall, I was in the
ski business, and what could be more seasonal. And as
a matter of fact, we closed in the off season.
(09:35):
We shut the doors because we were a specialty ski
store and skis was our game, and we didn't sell
aqua lungs in the summertime. But at any rate, we
never needed to use our line of credit. We had one,
it was Foune grant, but we never needed it. We
(09:55):
never needed to use it in the off season. We
had enough cash reserves built up to finance our summer
and so, and those strategies that we're going to talk
about today are the strategies that I used in order
to not even touch the line of credit that I
had in a seasonal business. And what makes this show
(10:18):
particularly valuable is that most business owners only focus on
cash flow when they're already in crisis mode. But the
business that the businesses that truly excel are those that
implement proactive cash flow management systems before problems arise. And
(10:38):
these businesses have the flexibility to these opportunities, to weather
unexpected challenges and to make decisions based on strategic goals
rather than immediate cash pressures. Big difference, and whether you're
currently struggling with cashblow challenges or simply want to optimize
(10:59):
your already stated position, the strategies will share today can
help you build a stronger, more resilient business because remember,
it's not just about surviving, it's about creating that financial
foundation for exceptional growth. So grab that pen and paper
because the insights you'll gain today could be worth tens
(11:19):
or even hundreds of thousands of dollars to your bottom
line and more importantly, today your cash position. And if
you're driving, certainly don't grab that pended paper, but listen
to our replay at Powerful Business Strategies dot com. So
let's dive into the first critical component of mastering your
(11:41):
cash flow, and that is identifying and addressing the common
cash flow killers that might be draining your business. Cashflow
problems are caused by specific issues that can be systematically
identified in things. So let me walk you through some
of those cash flow killers that we see across businesses
of all types and sizes. The way in the first
(12:01):
major cash flow killer is too much inventory. You know,
a great retailer in Massachusetts his name was Roger, Butchika
once said, the less inventory you buy, the more money
you make. And what Roger meant was is that too
much inventory can put you out of business quickly. And
this is the biggest mistake retailers make. It's overbuying, and
(12:25):
over buying not only kills retailers, by the way, it
kills distributors who overbuy product and manufacturers who overproduce. You know,
I once had a client in the distribution business well,
because of a promotion that didn't meet sales expectations, was
sitting on a seven year supply of a particular product.
(12:48):
Now we've got an offer of fifteen thousand dollars to
move this inventory. But it did and it cost my client.
That remaining inventory did cost my clients thousand dollars. So
sixty thousand dollars that cost was sitting there and we
got a fifteen thousand dollar offer. My suggestion was to
take the fifteen thousand dollars and reinvest it in fresh,
(13:12):
fast moving inventory that was turning over eight times per
year at a forty percent profit. Monitule by doing this
instead of tying up sixty thousand an inventory that would
take seven years to move, they generated an additional two
hundred thousand cash flows that year through the reinvestment of
that fifteen thousand in the fast moving product. This is
(13:37):
really really important, by the way, because there are several
factors why we business owners don't pull the trigger on
situations like this. Now, they would have never generated that
much cash waiting for that slow moving stuff to sell,
not a million years. And this illustrates a fundamental principle
because of the inventory turnover of more productive inventory, it
(13:59):
pays to cut your losses and get rid of that
slower moving inventory. So getting a question from a listener,
so the question is how can business owners determine the
right inventory levels for their specific business to avoid this
(14:21):
problem in the first place. Well, that's a great question.
The key is implementing what I call an inventory intelligence system,
and that's a systematic approach to the management of inventory
and is start by categorizing your inventory into A, B
and C items based on sales velocity and profit contribution.
(14:44):
So your A items, typically the top twenty percent that
generated eighty percent of your profit, should never be out
of stock and require type management for these items. Calculate
your optimal reorder point by multiplying your average daily sales
by your supplier lead, then add a safety stock factor
based on sales buriability. For B and C items, you
(15:07):
can be more conservative with stocking levels. Review these calculations
quarterly as sales patterns change from time to time, but
most importantly, implement a regular, slow moving inventory review to
identify and liquid date items before they become seventy year supplies.
Excuse the reference to the last example. So here's the
(15:28):
other thing. We need to check our egos at the door.
All of us, we business owners, never want to admit
that we made a buying mistake. It's probably one of
the biggest reasons why we hold on inventory, and as
a result, we keep the inventory way too long. My
client would have kept that inventory. We all have purchased dogs,
(15:53):
no matter how great our buying skills are. We all
have purchased dogs. Let's let's admit that they're dogs as
soon as we possibly can, instead of hoping and praying
that our dogs are really great anyway. The second major
cash flow killer, I hate to say it. It bothers
(16:17):
me to say it, but it's the owner's taking too
much salary or making too many withdrawals. This one hits
home hardest. The business is doing well, and as a result,
the owner increases their personal lifestyle, not necessarily too extravagantly,
but by the way, but more than the business can
afford if there is a downturn, and so while the
(16:39):
business is doing well, it's not really feeling the effects
of the additional salary that the owner is taking. And furthermore,
the owner feels entitled to it. I don't blame them
to a larger salaries. They probably took a smaller salary
while building up the business. The problem comes when the
business has a downturn and the owner can't adjust their
salary to look to a lower level, primarily due to
(17:01):
an increased personal lifestyle. So, unfortunately, there's only one way
to manage this kind of situation. It takes discipline, and
you determine a conservative salary, one that can be handled
during a down you know, a ten fifteen to twenty
percent downturn, and then when good years occur, you take bonuses.
(17:21):
That way, when bad years occur, the business isn't stringed
due to the owner's salary. Another major cash killer is
doing business with customers who are slow paying or don't
pay at all. Oh god. I've had clients continue doing
business with customers who are just slow paying because they
know them personally, or they've been they've been customers for
(17:44):
one hundred years, or because you know, business is bad
and they need to keep people working, so they take
on these these clients who just don't These customers are
clients that just don't pay. This is a very bad
business practice. You know, had client when one hundred and
fifty thousand and over ninety day receivables from slow moving
(18:05):
customers out of a two hundred and fifty thousand total
receivable balance. We immediately put all these customers in collection
and refuse to do business with them in the future. Now,
some of these customers still came back to us, but
we required them to pay cod and overall collections improved
dramatically afterwards. You just got to put your foot down
(18:27):
at some point. So establishing a system of collecting accounts
receivable so that your strategy is consistent and timely is
really important. This is when we go back to systems.
For example, for an invoice with terms of thirty days,
contact the customer between the thirty fifth and fortieth day.
The customer doesn't return your call. You're not satisfying with
(18:48):
their answer, send them a ten day demand letter. This
is from you now. Now I have a template for
this letter and I can give it to you if
you send an email to ask at NEXTSTEPCFO dot Nexlet's
ask at NeXTSTEP CFO dot net and I'll send your
reply with that template. But the past two isn't paid
(19:09):
within that ten days, you have to put them in collection.
And I know this is a big deal for a
lot of business owners, but this system works. It just
plain works. You have to get tough with some of
these people. The next major cash killer is having overhead
that's too high. Now in most businesses, the largest expenses
are rent, payroll, advertising, and insurance, and focusing on managing
(19:32):
these expenses will give you the biggest bang for the buck.
And for rent, even if you have a lease that
you're committed to, you can often renegotiate the terms. Not
all the time, I get that, but you can. Most
landlords understand cash flow problems that don't want to lose tenants.
I've done this before. Show them your financial statements. This
is before you're in default. Okay, you're still making You
(19:57):
made that last payment that you've think that that's the
last payment you're going to be able to make in
the next several months, show them your financial statements, demonstrate
what concessions you need, and explain how you're going to
pull through the difficult times. But here's the thing you
have to I'll say it again, renegotiate with the landlord
when it's clouding, not when it's raining. In other words,
(20:22):
be proactive. And how can you be proactive? You have
a business and cash flow forecast. So for payroll, there's
usually always a way to cut, whether by laying off
under performing employees or reducing hours. You know a retail
changing store opening and closing hours can sometimes allow for
(20:43):
a single eight hour, eight to nine hour shift instead
of multiple ships. When I was in the ski retail business,
you know our operation, our hours of operation were new
to nine. Let's says a ton of payroll. Customers never complained.
And for advertising, while I don't like cutting it, there
are ways to reduce costs dramatically impacting sales by reducing
(21:05):
ad sizes, changing from four color to two color printing,
or focusing more on digital strategies with better ROI and
better metrics tracking, and by using small budgets to test
different messaging. You can test for as little as five
dollars a day on Facebook, by the way, and for insurance,
get multiple quotes from multiple providers, or get quotes from
(21:28):
multiple providers. Your commercial insurance carriers get very competitive. They
can usually shop in their pencils on general liability policies,
but usually they don't shop at your pencils their pencils
unless you ask. So if you and the other thing
is is if you have an umbrella policy, you have
to reassess whether you truly need it. I had a
client who had an umbrella policy that was costing him
(21:50):
seventeen grade a year, and the only reason why he
had that umbrella policy was so we can make bids
on government jobs that required the umbrella coverage. In the
three years leading up to the time he hired me,
he was never ever successful on any government bid, so
(22:11):
we dropped the umbrella. The next major cash killer is
too much debt. You know, debt will kill you if
it's successive. And if that is killing you, it's time
to renegotiate terms. And I don't care if it's with
a bank, if it's with the SBA, If I don't
know if it's with a private let, I don't care
who's with. The key is, though, is to have good
relationships with them all the time. I call it feeding
(22:34):
your banker, both literally by taking them to lunch and
figuratively by constantly communicating with them about your business. Because
if you do that, over time, they get a better
understanding of your business, so that when you come to
them with all with problems due to a bad economy
(22:54):
and so forth, they understand how you're going to get
out of it, instead of you having to stop from
score and explaining your business over and over again to
these people. So be having good communication with a banker.
And if your banker leads, you have to you know,
you have to reignite the relationship with the new banker,
because bankers leave all the time, I get it. Areas
(23:16):
to negotiate, by the way, include interest rate reductions, extending terms,
switching into interest only payments, turning out lines of credit,
so there's a number of ways to renegotiate. The next
major cash killer is under capitalization. From the beginning, I've
never seen an entrepreneur, including myself, by the way, accurately
(23:37):
estimate cash required for a brand new venture. Once the
vention's going, we're really good at that. Before the fact,
we're a little we're a little tough. The inherent optimism
of we entrepreneurs automatically seems to dictate that cash needs
will be underestimated. So, because entrepreneur is always under estimate
(23:58):
cash needs, the search for money needs to be consistent
and continuous, and it's wise to take the money you
think you need and double it. I need to say it,
but that's the truth. So here's a question. Yeah, here's
a question from a listener. You've covered six major cash killers.
Which of these you find is the most overlooked by
(24:19):
business owners and why? Well, the most overlooked cash killer
is definitely slow paying customers. And most business owners they
understand inventory issues, they're cautious about debt, but they're surprisingly
surprisingly tolerant of customers who pay slowly or inconsistently, and
there's often an emotional component. They feel uncomfortable in forcing
(24:42):
payment terms with long standing relationships or or either they're
going to lose the customer if they're too strict. You know,
the customer agreed to terms, so you know, not being
too strict. But what business owners don't realize is that
every day of payment is late essentially means they're extending
and interest free loan to that customer. What manufacturing client
(25:06):
we worked with had over four hundred grand and receivables
beyond sixty days. That's four hundred grand they couldn't use
for growth, For under grand they couldn't use for debt
reduction or other strategic purposes. When we implemented a strategic
collection process, they recovered over eighty five percent of those
funds within ninety days, dramatically improving their cash position without
(25:28):
losing a single valuable customer. The lesson here is professional
payment enforcement actually improves customer relations by setting clear expectations
and putting you at the top of the list instead
of the bottom of the list with some of the
Lacklusser other vendors. Here's another question coming in for a
(25:53):
business owner who identified several of these cash killers in
their operation. How would you recommend how you prioritize them,
which ones to address first? Well? I recommend using what
I call the cash flow impact matrix. This involves assessing
each issue, each issue based on two factors, how quickly
can be addressed and how significant the cash impact will be.
(26:16):
For example, negotiating with slow paying customers can often generate
substantial cash within thirty to sixty days, while renegotiating a
lease might take longer but provide ongoing monthly savings. So
start with the quick wins, the issues that can be
addressed rapidly and with significant cash impact. Typically this means
(26:38):
focusing on accounts, receivable and inventory issues which can offer
free up substantial cash within thirty to ninety days when
you address them as we discussed. Then move to expense
reductions that don't require complex negotiations, are restructuring, and finally
tackle the longer term structural issues like debt restructure. The
(26:59):
key is since to build momentum with early successes that
generate cash, which gives you more flexibility to address the
more complex issues. Remember this is about implementing perfect solutions.
It's about systematic improvement that compounds over time. So before
I continue this discussion, we're going to take a ninety
(27:21):
second break. Hey there, business owners, let me ask you something.
Are you tied of blending in with your competitors? Frustrated
with slow growth and slim margins? Well, I've got news
for you. Everything you've ever learned about growing your business
is wrong, don't worry. I'm here to let you in
on a secret weapon, your position of market dominance. It's
(27:44):
what sets you apart, makes you irreplaceable, and has customers
lining up at your door. My name is Michael Barberrita
from NeXTSTEP CFO. I know what you're thinking. Sounds great, Michael,
How do I find my position of market dominance? Well,
that's exactly why we've created our game changing implementation program
called Next Step to Market Dominance. In just ninety days,
(28:07):
we'll guide you step by step to a position of
market dominance by uncovering your unique strengths that competitors can't touch,
by crafting a message that resonates deeply with your ideal customer,
by building a strategy that turns you into the go
to expert in your field. Now this is in theory.
These are battle tested strategies that have held businesses like
yours double triple and quadruple their revenue. Don't let another
(28:32):
quarter go by struggling to standout. It's time to dominate
your market. Period. Go to NEXTSTEPCFO dot net, forward slash contact,
fill out the form and in the message section put
the word dominate or call us at seven eight one
three two six three A two two. That's next STEPCFO
(28:53):
dot net forward slash contact or call us at seven
eight one three two six three A two two. Welcome back. Now,
let's explore the second critical component of mastering your cash flow,
and that's practical strategies to accelerate cash into your business
and then manage the outflows more effectively. So cash acceleration
(29:16):
is about more than just collecting payments faster. It's about
redesigning your entire business model to optimize the cash in
and out of your business. So let's explore some proven
strategies that can transform your cash position within thirty to
ninety days. But first let's focus on strategies to get
money into your business faster. So number one is optimize
(29:37):
your payment terms. The traditional model of doing work and
then invoicing with thirty day terms can create significant cash
flow gaps, so consider these alternatives. Upfront deposits or retainers
for service businesses that require Some service businesses require twenty
five to fifty ten payment for a start before starting
(29:59):
the work. I think you have to consider some type
of deposit or retainer before doing the work. Progress billing
for longer projects at specific milestones rather than waiting until completion.
For subscription models, convert one time purchases into reoccurring revenue streams. Also,
(30:20):
you can have discounts upfront. For example, if you have
a monthly subscription, if they pay it a year, you
could take a couple of percent off to the summation
of the twelve month subscription. Payments shortened payment terms, so
consider fifteen day terms instead of thirty. You know consulting
firm was struggling with cash flow despite being profitable, but
(30:44):
by simply changing from one hundred percent payment after project
completion to a model of fifty percent up front and
fifty percent on completion, they eliminated their cash flow problems
within sixty days. The second thing you should do is
streamline your billing process. So many businesses create unnecessary delays
in their own cash cycle through inefficient billing, So you
(31:07):
have to invoice immediately upon delivery or service completion, not
wait month in Second, use electronic invoicing rather than paper bills. Third,
implement clear detailed invoices that prevent payment delays due to questions.
Offer multiple payment methods, particularly electronic options, and set up
(31:30):
automatic payment reminders. You know a manufacturing company reduce their
average collection time from forty seven days to thirty one
days by implementing automated same day invoicing and electronic payment options.
This sixteen day improvement released over four and grand cash
that have been tied up in receivables. Oh, we got
(31:53):
a question already, a question from a listener. These strategies
make sense for services is but what about retail or
other businesses where payment is typically received at the time
of purchase? How can they accelerate cash flow? Good question,
So retail and point of sale businesses, they need to
(32:14):
focus on different acceleration strategies. So first, optimize your inventory
turn rates. The faster the inventory turns, the better your
cash flow. So implement just in time inventory systems where
wherever possible, and use data analytics to predict seasonal needs
more accurately, and then negotiate better supplier terms. Even extending
(32:36):
from NET thirty to NET forty five can significantly improve
cash position. Third, consider deposit systems for customer orders rather
than ordering products without a customer commitment another way. Fourth,
review your payment processor arrangements. Even a half percent reduction
and processing feeds, adds up substantially, and finally, especially if
(33:00):
retail by the way, and finally, create opportunities for prepaid
packages or gift cards, which provide immediate cash for services
delivered later. One retailer increase their cash position by one
hundred and twenty grand in ninety days through these models
without changing their core business model. So the first cash
(33:20):
acceleration strategy was optimizing your payment terms. A second was
streamlining your billing. The third is implement strategic collection processes.
Don't leave collections to chance or or inconsistent effort. Develop
a systematic, multi touch collection process that starts before the
(33:41):
invoice is due. So segment your customers based on payment
history and tailor your approach accordingly. A signed specific team
members responsibility for collections. Consider early payment discounts. So if
you have a thirty day invoice, if somebody pays in
ten days, give two percent but they don't let them cheat.
(34:02):
Don't let them cheat. I've seen a thousand times where
customers will pay they'll take the discount after paying in
fifteen days. Don't let them do that. Use technology to
automate much of the process. A distribution company implemented a
(34:22):
graduated collection system that included automatic email reminders that seven
days before the due date, then again on the due date,
and then seven days pass the due date, followed by
personal calls and then demand letters for anything beyond that.
Their pass receivables drop from thirty two to eight percent
within ninety days. I mean, it's just, it's just you've
(34:42):
got to do the work here and then leverage your
financial products strategically. Various financial products can help bridge temporary
gap temporary cash flow gaps. So like business lines and
credit secure these when cass blow is good, not when
(35:03):
you're already in trouble, You'll never get it. If you're
in trouble, you've got to build up your lines of
credit and always manage that. You know, if today you
have one hundred thousand dollars line of credit and you
still have it gone into it, you know, apply for
one hundred and fifty or two hundred. It'll help when
times get tougher. It's really important to do that. When
(35:26):
I was at Ski Town, we started with one hundred
thousand dollars line of credit. We ended up with four hundred.
We never used it. But that doesn't mean I don't
keep from trying to increase it. Invoice factoring, sell your
receivables at a discount for immediate cass. This is if
you have to inventory financing, use inventory as collateral for
short term funding banks. We'll loan on inventory supply chain financing.
(35:51):
Arrange for your customer banks to pay you immediately while
extending credit to them. One am my clients secured a
tw hundred and fifty thousand dollars line of credit when
their business was strong. A year later, when a major
customer delayed substantial payment, they were able to draw in
the line. Rather than missing payroll or delaying vendor payments,
(36:11):
or ending up with that not in their stomach. That's
prevented as short term cash fronts before becoming a crisis.
Now let's turn to strategies for managing outflows. Optimize your
vendor payment strategies, so how and when you pay significantly
impacts your cash position. So negotiate extended terms with key
(36:32):
suppliers forty five to sixty days instead of thirty. When
I was in the ski business, sometimes I got six
month terms. I've taken the inventory in February and I
don't have to pay it till October. I don't even
know how many months that is, but I think it's
more than six months. Consul and they'll do that if
you're a good customer and if you pay on time,
(36:54):
whatever the terms are. Consolidate vendors to gain better terms
to higher volume. Set up that's buying group stuff, you know.
Consider joining buying groups. Set up a systematic payment system,
a schedule rather than paying bills as they arrived. Consider
the strategic use of credit cards for certain expenses to
(37:15):
extend payment timing. I mean you can. You can take
thirty day terms and make them fifty if you're paying
a credit card. Think about that. Implement approval processes for
all expenditures above a certain threshold. A service business negotiated
extended payment terms with their top five vendors, resulting in
(37:36):
immediate seventy five grand improvement in their cast position without
any change in their operation or any revenue shift or anything.
Implement zero based expense reviews, so rather than incrementally adjusting
last year's budget, stop from zero. Require every expense to
(37:57):
be justified based on current business needs. Remember what I
said last week. You cut the expense if the expense
doesn't help you acquire a customer, if the expense doesn't
help you retain a customer, if the expense doesn't help
increase the long term valuable customer, and if the expense
doesn't help deliver your product or service to a customer.
(38:19):
Evaluate subscriptions and recurring expenses that this is a huge area.
Watch your credit card bill and look at these subscriptions
you're not using. Implement the rule of three get three
quotes for any significant expense. We already talked about that
for insurance. This thing was between essential and non essential spending,
and create formal approval processes for any new recurring expenses.
(38:46):
Then you can manage capital expenditures strategically. That's another area.
So major purchases can significantly drain cash if not managed properly.
So consider leasing versus buying for equipment that appreciates quickly.
We have formulists to show you which is better. Implement
a formal ROI return on investment analysis for our capital expenditures.
(39:10):
What's the payback of your capital expenditure? That's another metric
that's really important when looking at capital expenditures. Explore vendor
financing options. Create a capital expenditure reserve fund during strong
months manufacturing company was planning to purchase three and a
grand in equipment. By renegotiating a lease to own arrangement instead,
(39:33):
they reduced their initial cash outlay by eighty five percent
while preserving their working capital for operational needs. Here's a
question from a listener. Yeah, you shared many strategies for
accelerating cash flow, and for business owners who are already
(39:55):
feeling overwhelmed, what would be the one cash flow acceleration
strategy with the highest impact to effic ratio? Well, byat
to identified the highest level leverage strategy, it would be
implementing a systematic technology enabled invoicing and collection process. Period
Most businesses have leakage in their collections and they send
(40:18):
out invoices late. Their follow up is a consistent there's
no clear path when pay and you know when payments
are delayed. And by setting up automations for these things,
you will see incredible efficiency. Another question it is many
business owners worry about implementing stricter cash blow management by
(40:38):
damage relationships with customers or vendors. How do you recommend
balancing cash flow optimization with maintaining good business relationships. Well,
that's a crucial concern, but you stop by being transparent
and proactive in businesslike when changing payment terms, give advanced
notice and explain to the business of reasons. Frame collections
(40:58):
as a customer service function. For example, we're reaching out
to ensure everything was satisfactory with your order and to
confirm your invoice was received. I'm sorry to confirm our
invoice was received. For vendor relationships, don't just demand better terms.
Look for mutual benefits, perhaps offering faster payment on a
portion of invoices in exchange for extended terms. On the balance,
(41:23):
the most important principle is consistency. When your policies are clear, consistent,
and professionally communicated, they actually strengthen relationships by setting proper expectations.
So before I continue this discussion, we're going to take
a ninety second break. Hey, dear business owners, let me
ask you something. Are you tied of blending in with
(41:45):
your competitors? Frustrated with slow growth and slim margins? Well,
I've gotten news for you. Anything you've ever learned about
growing your business is wrong. Don't worry. I'm here to
let you in on a secret weapon. Your position of
market dominance. It's what sets you apart, makes you irreplaceable
and has customers lining up at your door. My name
(42:08):
is Michael Babarrita from Next Step CFO. I know what
you're thinking. Sounds great, Michael, How do I find my
position of market dominance? Well, that's exactly why we've created
our game changing impleentation program called Next Step to Market Dominance.
In just ninety days, we'll guide you step by step
to a position of market dominance by uncovering your unique
(42:30):
strengths that competitors can't touch. By crafting a message that
resonates deeply with your ideal customer, by building a strategy
that turns you into the go to expert in your field.
Now this is in theory. These are battle tests and
strategies that have helped businesses like yours double, triple, and
quadruple their revenue. Don't let another quarter go by struggling
(42:52):
to standout. It's time to dominate your market. Period. Go
to NEXTSTEPCFO dot net forward slash contact. Fill out the
form and in the message section, put the word dominating
or call us at seven eight one three two six
three A two two. That's next Step CFO dot net
forward slash contact or call us at seven eight one
(43:15):
three two six three A two two. Welcome back. So
let's focus down on the third critical component of mastering
your cash flow, and that's building robust systems that create
long term cash flow predictability and security. While addressing of
media cash flow issues is important, creating sustainable cash management
(43:36):
systems is what really moves the need from perpetually being
cash stressed to consistently being cash rich. So let's explore
the key systems that create this improvement. First, let's talk
about implementing a thirteen week rolling cash flow forecast. This
is perhaps the most single most powerful tool for proactive
(43:56):
short term cash management, and unlike annual budgets or even
monthly forecasts, a thirteen week cash flow forecast gives you
detailed week by week. That's why I said short term
earlier projections, week by week of exactly what cash will
be coming in and going out of your business. And
here's why this timeframe is so powerful that thirteen weeks
(44:19):
it's long enough to identify potential cash crunches before they occur,
it's short enough to forecast with reasonable accuracy. It captures
both immediate operational realities and longer term trends and it
enables you to test the cash impact of decisions before
you make them. The key elements of a thirteen week
cash will include beginning balance of projected cash receipts based
(44:44):
on receivables and sales forecasts, projected cash disbursements categorized by
tight your anti cash balances, available credit facilities, and total
liquidity position. But what makes this tool particularly powerful is
that it's updated weekly on a rolling basis. This means
you're always looking forward thirteen weeks, continuously refining your projections
(45:06):
based on actual results. I worked with a construction company
that was perpetually in cash crisis despite having profitable projects,
and by implementing a thirteen week cash rolling cash flow forecast,
they identified that they had a reoccurring cash crunch every
quarter when certain income tax payments came due, and this
(45:30):
insight allowed them to set aside cash in anticipation of
these predictable obligations, rather than being caught by surprise each time.
Quick question here from a listener that would take this
thirteen week cash flow forecast sounds good, but it also
seems like it might require significant time and expertise to maintain.
(45:53):
How can a busy business owner implement this without it
becoming overwhelming. Well, that's an important practical consideration. Key is
starting simple and leveraging technology. So begin with a basic
template that captures your major cash inflows and outflows without
getting lost in minor details. And many accounting software platforms
(46:14):
now offer cash flow projection features that can automate much
of the process, and for businesses without this capability, even
a straightforward Excel spreadsheet can work effectively. The critical part
is establishing a weekly rhythm. Perhaps every Monday morning, you know,
we update actuals from previous weeks and adjust projections for
(46:35):
the coming week. You know. This typically takes thirty to
sixty minutes. Once the system is established, the time investment
is minimal compared to the return, quite frankly, and we
do this as well by the way we prepare. I
prepare cash flow forecasts for two or three clients right now,
(46:55):
I think, I think it's two. I prepare this and
I meet with her every week on it, every Monday.
The second critical system is implementing cash flow KPI. So
ito's a key performance indicators that give you early warning
of potential issues. And while thirteen week cashflow thirteen week
forecast looks forward. These KPIs help you understand your current
(47:20):
cash position with greater clarity, and the key KPIs will
be the cash conversion cycle, which is how long it
takes to confer investments in inventory and other resources into
cash from sales. The second one is the day's sales outstanding,
(47:41):
which is the average number of days it takes to
collect a payment after a sale. Days payable of standing
is the average number of days you take to pay
your vendors. And inventory days is the average number of
days inventory sits before being sold. So think about this.
You know the average number of days it takes to collect,
(48:02):
you know the average number of days your inventory sits
before being sold, and if you know the average number
of days it takes to pay your vendors, add up
those three averages. That's essentially your cash conversion cycle that
I mentioned at the first step. And by tracking these
metrics consistently, you can identify trends before they become problems.
(48:28):
For example, if your day sales outstanding is steadily increasing,
you know your collection process needs attention before it creates
a serious cash shortage. Okay, so let me recap what
we talked about today, because I am running out of time,
(48:49):
so as we wrap up today's discussion on mastering your
cash flow, let's summarize some of the key strategies we've
come for transforming your business from cash stock to cash reds. First,
we explained to common cash blow killers that drain businesses
of their lifeblock from excess inventory and inappropriate owner compensation
(49:09):
to slow paying customers at high overhead. We emphasize that
identifying these issues isn't about assigning blame, but about diagnosing
the specific causes of cash res trade so they can
be systematically addressed. Remember, cash flow problems are really about
how much money a business makes, They're about systems a
lock thereof. Second, we come with practical cash acceleration strategies
(49:34):
that can transform your cash position from thirty to ninety days.
I'm sorry, transform your cash position within thirty to ninety days.
We discussed optimizing payment terms, streamlining your billing process, implementing
strategic collection systems, and leveraging financial products effectively. We also
exploit strategies for managing cash flows more intelligently from vendor
(49:57):
payment optimizations, zero based expense reviews, strategic capital expenditure management,
and the key insight here is that small improvements across
these multiple areas they compound on each other. Third, we
examine the robot systems that create long term cash predictability
and security. We've discussed the power of the thirteen week
(50:18):
rolling cashblow forecast and the importance of tracking key cashblow KPIs,
establishing a consistent management cash blow management rhythm, and creating
cash flow buffers. So as we leave the show today,
I encourage you to take these three specific actions. Number One,
(50:39):
conducted honest assessment of which cash blow killers are president
in your business. Implement at least one cash flow acceleration
strategy in the next seven days, and begin building your
thirteen week cash blow forecast immediately. Remember, cash flow mastering
isn't about luck or even about how much revenue your
business generates. It's creating intentional systems that optimize the cash
(51:04):
the flow of cash in and out of your business.
And when you do this consistently, that not in your
stomach that I mentioned at the beginning of our show
begins to dissolve and replace by confidence that comes from
true financial clarity and control. To get a copy of
the book Powerful Business Strategy, simply go to our website
(51:25):
www dot NEXTSTEPCFO dot net. It's totally complimentary and until
next Monday at New Easton time for Chucky Obio. My
name is Michael Barberita, and remember, don't keep doing what
your competition is doing.
Speaker 2 (51:42):
You have been listening to powerful business strategies finding out
that everything you ever learned about growing your business is wrong.
Tune in next week and every week at noon Eastern
time on W four CY Radio with your host, Michael
Barberita of Next Step CFO and moderate or Chugi Obio
Popular Podcasts
Fudd Around And Find Out
UConn basketball star Azzi Fudd brings her championship swag to iHeart Women’s Sports with Fudd Around and Find Out, a weekly podcast that takes fans along for the ride as Azzi spends her final year of college trying to reclaim the National Championship and prepare to be a first round WNBA draft pick. Ever wonder what it’s like to be a world-class athlete in the public spotlight while still managing schoolwork, friendships and family time? It’s time to Fudd Around and Find Out!
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!