Mining Your Business For Hidden Cash
Tuesday, June 18, 2024 - 9:30am to 11:00am
Price:
Free!
The "Clear Path To Cash Lesson - Mining Your Business For Hidden Cash" is a meticulously designed guide aimed at helping business owners unlock latent cash potentials within their operations. This tutorial is structured around six essential calculations that highlight areas ripe for cash flow improvement. These calculations are organized under two main categories: Cash-Generating Activities and Cash Conversion Activities.
Cash-Generating Activities: This segment focuses on direct methods to boost cash inflows. It includes a thorough assessment of sales, gross profit, and operating expenses. The objective is to optimize in the areas that are creating the largest drag on crucial resources thereby increasing the cash coming through the business.
Cash Conversion Activities: This area delves into the efficiency with which a business transforms its operational processes into cash. It specifically looks at how quickly inventory, accounts receivable, and accounts payable are managed to optimize cash flow. The faster a business can convert these elements into cash, the more effective it is at managing its financial operations.
Leveraging these calculations, the lesson directs businesses to construct a "cash leak map," a visual tool that pinpoints areas where cash may be leaking unnoticed. This strategic visualization aids in making informed decisions to streamline operations, seal cash leaks, and boost overall financial health and sustainability.
This series is brought to you by Central California SBDC and taught by SBDC advisor “Cash Flow” Mike. Small Business Development Centers (SBDC) provide quality business assistance to small businesses at no cost! Our business advisors provide clarity and pathways to get businesses off the ground and push current businesses to their full potential.
Small Business Development Centers (SBDC) provide quality business assistance to small businesses at no cost! Our business advisors provide clarity and pathways to get businesses off the ground and push current businesses to their full potential. Learn more here: https://centralcasbdc.com/
