…they would manage where you are going, not just where you’ve been.
My last post highlighted Cash In which determines your solvency. Cash Out is the other end of that, draining business resources. So, I look very closely at the cash drivers. Are we getting credit? Why not? Are creditors financing debtors? If not, why not? Are we overpaying suppliers? Are we outsourcing? Are our people productive? Are we borrowing to finance the gaps? Do we have enough cash to invest in growth?
I then report to you with recommendations to decrease cash outflow.
My next email deals with Debtors.
Meanwhile, if you don’t have a FD, call me. I’m a fraction of the cost, and I work on the basis that every £1 you invest in me delivers at least a £3 return.
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