Those who...
1. Track everything
2. Track nothing
Whether ignorance or information overload - neither is ideal.
Instead, choose fewer, but more meaningful KPIs.
The #1 reason a company fails:
Cash flow issues.
Track this metric to thrive:🧵
Those who...
1. Track everything
2. Track nothing
Whether ignorance or information overload - neither is ideal.
Instead, choose fewer, but more meaningful KPIs.
The info can be applied to:
1. Finance
2. Operations
3. Customer Management
One centralized KPI keeps departments working together.
The best part?
It's centered around cash.
The time (in days) it takes a dollar to go from product or service to cash in the bank.
Note: CCC is used for inventory investments, but the service equivalent is called:
Service-to-Cash Cycle.
Same principles, so we'll use CCC for simplicity.
In days, and...
Above 0 = longer to sell & collect cash than to pay vendors.
Below 0 = faster to sell & collect cash than to pay vendors.
The lower, the better.
Higher numbers indicate current or future cash flow issues.
How is it used across departments?
Strong CCC means there is cash to fuel growth.
Without it, growth must be financed.
It's risky - with larger receivables, comes larger payables.
When bills are due & there's no cash...
You know what happens.
Make cash collection a priority & finance teams can analyze new opportunities instead of restructuring debt.
Collecting cash quickly is a function of operational efficiency.
Product/service, sales, A/R, & A/P teams must be working together with accurate and timely information.
This is easier said than done.
Low CCC = effective management.
Getting great payment terms from customers & vendors requires quality relationship management.
Consistency, reliability, & being liked will dramatically improve the cash position.
Treat them well and be clear with expectations.
Extremely.
Harvard Business Review credits a negative CCC for Amazon's survival of Dot Com bust.
By collecting before spending, sustainable growth was possible.
Competition was financing product purchases, hoping to collect.
A viscous cycle.
With my SEO company, Bright Line Media, I collect cash 21 days before I owe vendors.
It wasn't always this way.
I once paid a vendor 2X before getting paid and it prompted change.
Here's what I did:
1. Payment date to the 5th
2. Must pay via Stripe
3. NO physical checks
Receivables, solved.
I negotiated better payment terms by always paying on time & promising to pay via ACH (no fees).
Payment Date 26th.
21 Days from collection to payment.
New sales enter into this cycle & never incur an out of pocket cost.
Quick Summary:
1. Don't overproduce / hire
2. Collect cash quickly
3. Set consistent payable cadence
4. Cross department communication
Build a healthy company - on the cash you're owed!
Follow me @barrettjoneill for more on business, growth, & SEO.
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Funny, before the election I recall lefties muttering the caravan must have been a Trump setup because it made the open borders crowd look so bad. Why would the pro-migrant crowd engineer a crisis that played into Trump's hands? THIS is why. THESE are the "optics" they wanted.
This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."
There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?
It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."
The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.
Funny there are those who think these migrant caravans were a FANTASTIC idea that's going to take the immigration issue away from you.
— Brian Cates (@drawandstrike) November 26, 2018
Like several weeks watching a rampaging horde storm the fences & throw rocks at our border patrol agents & getting gassed = great optics!
This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."
There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?
It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."
The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.
