Maximizing Cash: Unleashing the potential in your business · E-Myth Worldwide E-Myth is the pioneer in business coaching and training, an icon for transformation since 1977. Drawing

Maximizing Cash:

Unleashing the potential in your business

Maximizing Cash:Unleashing the potential in your business

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.

“Why is there so much month left at the end of

the money?”

– Anonymous

A Quote To Get Us Started…

What Is Cash Power?

What is your definition of

“Cash Power”?

How did you come to that conclusion?

Perception, Assumptions, Comfort Level

• Were you surprised by your response?

• What is your comfort level?

• What are your assumptions on cash and money?

The Main Financial Reason Businesses Fail

Lack of Cash Flow

Cash Power = Financial Momentum

Would you rather be stuck, or experienceHigh Performance?

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.

Bank Accounts

Bank Accounts

Accounts Receivable (aka A/R)

Inventory

Equipment & Facilities

Equipment & Facilities

Accounts Payable aka A/P

Debt & Revenues

Expenses

Purchasing

People & Business Systems

Summing It Up

Implementation Plan

Take What You

Learned And

Put It To

Work For You

What strategies can you begin to

implement this quarter?

Actions for Implementation

What do you need to…

Continue Doing? Stop Doing? Start Doing?

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