What would you name as the toughest growth obstacle for your company to overcome? There are lots of obstacles to growth to overcome. Perhaps the most difficult one to work around is CASH, or more specifically lack of cash.
Lots of reasons for this, but it all comes down to this. Growth requires the outlay of cash. Without much cash, your options for creating growth become limited. If you run out of cash, hard times follow. There you have it, a growth obstacle. Verne Harnish, author of Mastering the Rockefeller Habits and Scaling Up, refers to it as the universal rule of growth. “Growth sucks cash”!
Cash flow is difficult to understand, track, and predict. It’s much more difficult than doing the same for revenue and profits. Growth comes from building revenue that after expenses becomes profit, but profits don’t necessarily turn into cash that drops into your bank account.
How many times have your P & L and balance sheet looked pretty good while your bank balance is low, and you are eating up your line of credit? How about the converse, when your statements look bad but the bank account is full?
To grow, you have to get a handle on your cash and how it flows through your company. A cash flow analysis should be done on a regular basis in every company. Do you know how to do one?
I’ve added a new weapon to my arsenal: The Cash Flow Tune-Up. It’s a short term coaching engagement where we pull your numbers and do an in depth analysis. We then have a hands-on brainstorming session to determine specific actions you can take to “push the right cash flow levers” to improve your business. We’ll come up with practical “Power of One” tactics or “One Percent Solutions” that increase your cash.
Gazelles Coaches, and I, have found that in just about every business, we instantly find easy ways to deliver 25% more cash from a business.
To learn more about the Cash Flow Tune-Up, and two other Business Tune-Ups I offer, go to http://in-synk.com/offerings/tune-up/.
Better yet, reach out to me via my contact page, and let’s set something up to get your cash flowing stronger therefore unleashing your growth.