Managing cash flow is not rocket science. Find out simple things you can do and understand why you should do them. Then download a free app to keep you on track.

1. Fast Strategy
Growing the value of your business

2. what grows value?
§ financials
§ sustainability
§ market power
§ cyclical timing

3. let’s look at financials
cash flow management 101

4. cash flow always looks complicated

5. but it’s not: there are only three bits
cash from
operating activities
cash from investing
activities
cash from
financing activities

6. what those three things mean is
what you do
what you’ve got
how you pay for
the first two

7. why bother doing it better?
more money in the bank
means less debt or
better cash management

8. what can you do?
run a health check
on all three bits

9. operating cash: what you do
2"
• get more money in
• get it in quicker
• pay less money out,
• pay it out slower

10. investing activities: what you’ve got
• sell redundant assets
• apply resources to new
processes
• own or lease
• rent or buy

11. financing cash: how you pay for it
4"
• get best terms
• raise equity
• reinvest profits

12. cash flow matters from start to finish
warehousing and distribution
manufacturing/service executiion
materials scheduling
sales order processing
forecast and supply chain planning
inventory management
product range management

13. get the whole firm involved
managers
finance
operations
sales

14. the goal is to reduce the cost of capital
“the greater the difference
between your cost of capital
and your return on capital
the greater the value you create”

15. a dollar saved means more than a dollar in value
A real example:
cash flow management saved my
client $758 a month
he sold the business for 7 times
earnings
that added over $60,000
to his sales price.

16. here’s how
$768 per month
= $9,216 per year
X 7
= $64,512
how to get a free Lexus:
RRP = $63,750

17. how are you going? Rate yourself
(5 = great; 1 = not so good)
Business Audit - A simple management checklist
© Alan Hargreaves P
rechargeworkshop
1. Financials
RATING (CIRCLE) ACTION
1. Working Capital:
How do you rate your working capital management?
Are terms and conditions methodically structured and
clearly stated? Are they monitored and applied? Are
accounts receivables firmly managed?
2. Investing Cash:
Do you run a lean asset base? Do you regularly
review your asset base, eliminating redundant
investments, maintaining the most cost effective mix
of owned and leased or rented assets?
3. Funding:
Is the funding structure that finances your business
the optimal model? How often do you review
relationships with banks, shareholders and other
intermediaries?
4. Strategic Integration:
Is cash flow management a strategic priority across
the entire spectrum of your firm: management, sales,
marketing, operations, finance?
5. Monitoring:
Have you identified your preferred KPIs or relevant
ratios that determine the overall performance and
value of your business? Are they the right ones?
What are the key strategies you can put in place to
optimise performance in these areas? What is the
most important one for cash flow management?
YOUR TOTAL RATING (A) /25

18. want to go better? Think about some of these
working capital
• terms and conditions
• inventory management
• payment incentives
• preferred suppliers
investing cash
• divest legacy assets
• reassign resources
• rent or buy
• lease or own
funding
• renegotiate credit lines
• add debt
• dividend policy
• shareholder funding
whole-of-firm
• full spectrum cash management
• forecast to fulfill
• holistic strategies
• cost-of-capital targets
monitoring
• use of KPIs
• appropriate ratios
• link compensation to cash flow
• decision yardsticks

19. fast
slow
complex
simple
what’s the fastest, simplest thing you can do NOW

20. for immediate results, try my free app

21. it show lots of ways to boost your business

22. you just rate yourself

23. and see what you can do to go better

24. you can find many more ways to increase the
value of your business at: