How to Increase Company Cash in 2020

cash improves business performance
Make 2020 Your Year of Cash

We’ll be helping client companies focus on cash. Why? As crazy as it might seem, I hear too many owners talk incessantly about revenue or the top line, and I hear CPAs talk incessantly about ‘tax planning’ and I rarely hear anyone talk about accumulating cash.

It is cash that makes top line growth (more revenue) possible, and it is cash that makes earnings/profit grow year-over-year. Cash reduces risk.

Start with Strategy

The focus on cash begins with a straightforward articulation of the company’s strategy. For strategy to be truly useful it has to be written in such a way that anyone can SAY it out loud. It should be easy to check your TO-Do list against; to focus brainstorming and other discussions around; and to measure your actions and results against.

Every company has its preferred buyers and its preferred offerings. My clients work on making a list of the matches between buyers and offerings. Not everyone is a good fit for everything, and some people are a fantastic fit for some offerings. That’s where your strategic statements comes from.

You’ll make strategy useful when you write a series of statements that read like this:

We deliver X value to Y buyers and make Z profit.

Notice that it is the value you deliver that is what buyers are buying. This puts the emphasis on outcomes, not inputs. This makes a huge difference to the way buyers perceive your company’s offerings.

And also notice that you are forced to make a strategic statement about profit for each pairing of buyers and offerings. This is how your company accumulates cash.

What would be your top 5-10 strategic statements?

If you’re inspired to write your top 5-10 strategic statements but feel you need some help, let us know. We are always happy to help, whether the scope is large or small. 703-801-0345

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