cash - The Strategic CFO®

Strategy for Managing Cash

Does your company have a strategy for managing cash? Many companies have established procedures for purchasing materials, collecting customer payments, and paying vendors. But often people either do not communicate these procedures or simply don’t follow them consistently. Even when everyone is aware of and follows the established protocol, your system may be flawed. Before we show an example, you need to know how to manage cash flow. Know How to Manage

October 25, 2019

The CFO Guide to Your CEO

Wouldn’t it be great if we had a guide for everything we do? A guide for marriage? A parenting guide? A guide to dealing with difficult times? Or maybe a CFO guide to understanding your CEO? Typically, Chief Executive Officers (CEOs) come from an operational or sales background. Naturally, Chief Financial Officers (CFO) do not

August 9, 2017

Why do most startups fail?

Right now is the time of innovation – kickstarters and new types of marketing campaigns are popping up everywhere. You might have an idea yourself, regardless of whether you’re a Millennial, Generation X, or even a Baby Boomer! So how do you know if your idea is a good one? As I have mentioned in

February 1, 2017

Improving Profitability – Fuel for Growth

How do you focus on improving profitability instead of just boosting sales? 2016 wasn’t the best year for some of us, but the new year provides a perfect opportunity to reassess goals. An entrepreneur’s natural tendency is to increase sales in order to balance out last year’s financials. But what many entrepreneurs fail to consider is

January 10, 2017

Unlock Cash in Your Business

Unlocking cash in your business can make a major impact on valuation, cash flow, profitability, and so much more. As the saying goes, “Cash is King.” However, there is often money lying around that is essentially “locked up” in the system. Unlocking Liquidity Liquidity is key to success. A company could sell all the widgets in

June 22, 2016

How long can a company lose money without running out of cash?

Only when the tide goes out do you discover who’s been swimming naked. – Warren Buffet Is the Houston economy’s metaphorical “tide” going out? It’s hard to say, but some businesses are definitely feeling a bit “naked” these days. They may not even realize the peril they’re in because they still have positive cash flow despite the fact they’re losing money. This begs

December 9, 2015

5 Ways to Prepare for Seasonality

Seasonality can be brutal. If your business is like ours, summertime is pretty slow. The phones don’t ring, employees and clients are on vacation, nobody is available for appointments and not much happens in general. Even if summertime is busy in your industry, chances are that there are other times during the year that business

August 4, 2015

Daily Cash Report

When we start a consulting engagement with a new client, one of the first tools we implement is the Daily Cash Report. While the concept is simple, the results can be very powerful. If you’ve ever realized on Thursday afternoon that you don’t have enough cash for Friday’s payroll, then you know exactly what I

April 9, 2015

Managing the Banking Relationship in a Growing Market

Business is rarely easy. Even in a growth market, there are still challenges. They are just different challenges than in a recession. Managing the Banking Relationship in a Growing Market In Houston, we are seeing companies who are continuing to grow and generate cash. As they seek to expand their operations and invest in infrastructure, they are running

June 10, 2014

Managing Cash Flow

Effectively managing cash flow is an issue that all businesses face, whether they have plenty of cash or are experiencing a cash crunch. Cash is the lifeblood that fuels current operations and allows for growth, so developing a strategy to manage this most important asset is key. Effectively Managing Cash Flow So how do you

August 27, 2013

Signs Of A Company In Trouble

See Also: Value Drivers: Building Reliable Value Chain Cash Flow Statement Working Capital Free Cash Flow Management Definition Signs of a Company in Trouble Usually, a troubled company has warning signs which are consistent across industries. When considering an acquisition of, investment in, or employment with a company it is best for your peace of

July 24, 2013

Why Don’t I Have Cash?

See Also: Cash Cycle Cash Flow Statement Free Cash Flow External Sources of Cash Why Don’t I Have Cash? I was involved in a meeting with a prospect a few weeks ago who we will call Don. Don owns a manufacturing company which is presently experiencing a growth rate of thirty percent annually. He is

July 24, 2013

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