Cash & Profitability Growth Strategies

According to 2024 data from the US Bureau of Labor Statistics, 20% of businesses fail in their first year, and a whopping 49% fail by their 5th birthday. The #1 reason for these failures is an inability to generate positive cashflows on a regular basis. The old adage, Cash is King is true. If organizations are unable to generate consistent positive cashflows, vendor invoices may not be paid timely, loans could be defaulted on, there are limited opportunities for business growth, possible reputational damage to the organization and unfortunately, in many cases business failure. Our firm partners with business owners and leaders to proactively guide their organizations towards the generation of consistent, positive cashflows and profitability. In other words, we provide strategic guidance to facilitate growing and successful businesses.

We utilize a 3-step approach to guide client organizations to achievement of their big vision, financial success and stability.

1. An initial assessment of the business’s financial health is performed. This provides the business owners/leaders with a clear understanding of their organization’s current fiscal conditions. We focus on the key drivers of cashflow, revenues and profitability.

2. We then gain an understanding from the business owners/leaders of what their vision of success looks like. What drives them? Why did they get into business? What are their organization’s short term (current year) and long term( next 5 years) financial goals or targets? We assist organization leaders with translating their broad/ high level goals into specific, measurable targets. We help them set targets for each of the key drivers of cashflow, revenues and profitability, against which actual financial performance will be compared on a monthly basis.

3. Each month we meet with business owners to review their organization’s financial performance utilizing a clear, insightful color-coded scorecard of actual cashflow, revenues and profitability performance against the established goals. Green color-coded financial results means established goals have been met and/or exceeded, yellow color-coded financial results means there is a risk established goals may not be met in the near future. Red color-coded results means established goals have not been met. We partner with management to implement strategies to turn red and yellow-coded financial results to green.