What's Inside...

• Why Cash Flow is Critical to Strategy
• 4 Strategies to Boost Cash Flow
• ​Ways to Work Together​

1. Why Cash Flow is Critical to Strategy

A growing professional services company recently charted their 3-year strategy.

As part of our engagement, I reviewed their P&L over the last 5 years.

We reviewed data & graphs showing –

• Revenue by year
• Expenses by year
• Net income by year
• Net profit margin by year
• Annual revenue by business line by year
• and more...

The analysis revealed –

• Paying for licenses for employees who are no longer with the company
• $100k in cash sitting in a checking account that could have been earning interest - in a savings account, money market, or other interest-bearing (and inflation beating) account
• A substantive lag in accounts receivable
• and more...

During our work together, leadership gained a deeper understanding of where money was coming in & going out.

We discussed their priorities over the next 3 years and the resources needed to make them happen.

• Do you want to make the next hire?
• Do you want to invest in the new accounting system?
• Do you want to plan for growth?

Cash flow is critical.

What cash flow opportunities does your business have today?

2. 4 Strategies to Boost Cash Flow

Spring Cleaning – 'Tis the season. Just like an annual house cleaning, review your business expenses each year. Think of that shirt that you’re “keeping just in case." Inventory subscriptions, memberships, and other recurring expenses – and discard the excess expenses.

Value-based Pricing – Price your offerings based on outcomes. If your one-day $10k session results in $80k of new revenue for your client then that's a solid return on investment. Focus on the value your company delivers – experience and expertise – versus time.

Cash is Queen – A lag in accounts receivable hurts your business. Can you negotiate shorter payment terms & invoice upfront? Automate and follow up.

The Perfect Pair – Pair products and services to complement one another. If you offer services can you productize them through a book or course? If you offer a product, can you offer services to support advanced features?

The good news is you don't have to do it all at once.

Just pick one and start today.

And when you're ready, Jumpstart Your Strategy.

​Schedule a call for help with your company's growth.

3. Ways to Work Together

Here are two ways we can partner in these rapidly changing times.

• Leadership Offsite: Define your growth strategy & priorities, clarify your go-to market plan, & improve your team's communication. (Learn More)
• ​Strategic Executive Advisor: Embed strategic advisory services within your C-Suite as part of your team. (Learn More)

As always, thanks for reading.

To your strategic success,

Susan

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