About This Site

I will focus on things that I see and read, that either amuse or annoy me, but always illustrate the critical importance of customer-driven strategy.

Are you happy with your cash flow?

Of course not. Nobody is.

But do you know how to improve it?

No. Not if you follow the usual advice!

Paul Fifield – “one man in his time plays many parts …”

Let’s talk about cash…:

  1. What is Cash Flow?
  2. Movement of money into or out of a business, project, or financial product
  3. Cash inflows (or money in) can be generated through the sale of goods or services, money earned through investments or money borrowed
  4. Cash outflows (or money out) cover the payment of expenses, payments to suppliers and buying equipment.
  5. Positive cash flow is when a business is generating more cash inflows than outflows. Negative cash flow is when cash outflows outweigh cash inflows.
  • Why is Cash Flow Important?
    • Lack of cash is one of the biggest reasons small businesses fail.
    • The Small Business Administration says that “inadequate cash reserves” are a top reason startups don’t succeed. It’s called “running out of money,” and it will shut you down faster than anything else.
    • “Entrepreneurs believe that profit is what matters most in a new enterprise. But profit is secondary. Cash flow matters most.” —Peter Drucker
  • How can/should you “Manage” Cash Flow?
    • Advice varies but usually includes suggestions such as:
      • Encourage your customers to pay you faster
      • Pay your own bills a bit slower
      • Purchase less inventory and keep less inventory on hand
      • Follow up on bad debts
      • Establish a line of credit or other type of business loan
  • Unless you thrive on constant fire-fighting, have you thought about where tomorrow’s Cash Flow will come from?
    • Don’t answer that…

Obviously the best way to improve cash flow is to generate more, not simply reduce outgoings. 

Let’s start by thinking about where Cash Flow comes from – Customers.

How can you ‘make’ customers give you more money?

Let’s talk about Customers…