Business is just like the game of Monopoly.. Run out of cash and it's GAME OVER!
Growth sucks cash and cash is your oxygen for growth.
Companies usually don’t fail to grow due to lack of profit, they fail because they run out of or have insufficient cash because they have neither managed it, forcast it or understood it sufficiently.
If you answer “no” or “not good enough” as you consider the following questions, then your growth potential is being limited:
If you answer “no” or “not good enough” as you consider the following questions, then your growth potential is being limited:
- You know how much cash is needed to fund your growth during the next 3-5 years?
- You have sufficient levels of cash to fund our growth.
- You have detailed 3 year Cash flow and P&L Budgets in place that are aligned to your growth Plans?
- You have P & L and Cashflow Statements prepared on a monthly basis to show variances in performance against budgets.
- Should you require external investment, you are investable and investment ready?
- Your Leadership and Executive Teams have the appropriate level of financial literacy for the positions they hold.
- You regularly work to optimise cash and shorten your cash conversion cycle?
- You have a tight cash collection procedure and your customers are mostly paying within their agreed payment terms?
- Every line on the P & L and Balance Sheet has assigned ownership to a member of the Leadership Team
- You have a strong and capable Finance team.
If you’d like some guidance and help getting your Cash decisions right…
People
You will have a happy and healthy working environment because you have the “Right People”
Strategy
You will have truly differentiated yourself in the market place you serve and be achieving consistent Top line growth.
Execution
You will have less drama and industry leading margins because people will be doing things right.
Cash
Growth Sucks cash and cash is the Oxygen to Breath. This decision allows you to have sufficient cash to FUND GROWTH.