Maximizing Cash: Unleashing the potential in your business · E-Myth Worldwide E-Myth is the...
Transcript of Maximizing Cash: Unleashing the potential in your business · E-Myth Worldwide E-Myth is the...
E-Myth Worldwide
E-Myth is the pioneer in business coaching and training, an icon for transformation since 1977. Drawing on the revolutionary principles
of the best-selling book, The E-Myth Revisited, we provides a universal and comprehensive set of business tools and coaching
services delivered via phone, web and events. We serve our clients by challenging the status quo and showing them how they can
better manage and grow their business.
Our clients own their businesses.
We help them own their transformation.
Perception, Assumptions, Comfort Level
• Were you surprised by your response?
• What is your comfort level?
• What are your assumptions on cash and money?
Find Cash and Create Cash Power
1. Decrease assets
2. Increase liabilities or capital
3. Increase revenues
4. Decrease cash expenses
5. Improve productivity
6. Optimize time of receipts and
disbursements
Rule 1 – Decrease Assets
� Return on Assets
� Cash
� A/R
� Inventory
� Equipment
Are you making the most of them, or are they underutilized?
What Can You Do To Decrease Assets?
Are you making money off your bank account?
Are you paying attention to the money owed to you?
What Else Can You Do to Decrease Assets?
� Assess inventory levels
� Maximize productive outputs from your machines
� Create new ways of generating revenue with the equipment you already own
� Is your facility too big or too small?
Rule 2 – Increase Liabilities or Capital
� Collect money owed to you are fast as possible
� Extend your payments out as far as you can
Rule 3 – Increase Revenues
� Increase Prices
� Early Payment Discount
� Pre-payment, partial payment, C.O.D
Rule 4 – Decrease Cash Expenses
� Cut out cash expenses
� Depreciation
� Payment Plans
� Increase Liabilities
Rule 5 – Improve Productivity
� Labor
� Facilities & work area
� Equipment
� Supplies & raw materials
� Time & money
Getting the highest and best use from your resources:
Tips for Improving Productivity
• Focus on areas with key outputs
• Establish averages to get production rates
• Compare current day reality to see where there are gaps in efficiency
• If the business were 10x larger, what would you need to change to be more productive?
• Involve your people
Rule 6 – Optimizing Timing
� Stretch Out Your Payments
� Pre-payment, C.O.D., down payments
� Create Just-In-Time Inventory System
Cash Power Checklist
A tool to help you uncover any missing cash available for growth and development.
Implementation Plan
Take What You
Learned And
Put It To
Work For You
What strategies can you begin to
implement this quarter?