The simplest way to increase the value of your business

How a dollar turns into more than a dollar

Here are four simple financial objectives in any business: generate more cash, cut interest costs, reduce debt and boost value.  Your product and marketing strategies address these objectives at the revenue and expense lines. But for any company, be it highly successful or struggling, a focus on cash flow can also aggressively optimize all four targets.

The fact is boring stuff like cash flow management boosts your wealth. Every dollar you create or save is worth more than a dollar.

Before you switch off, check out a real example

A client runs a successful business. Nonetheless, last year it had in excess of $100,000 in outstanding debtors stretching out past 120 days. He is a positive person. His view: it’s probably a hassle to fix it and I can afford it. The reality: it’s not that hard to fix and the return on doing so is worth the trouble.

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Financial literacy: knowing what you know

Aligning business intuition with financial arithmetic

You've got a brilliant idea. You make an excellent presentation to the board. A director asks: "What discount rate are you using for NPV over five years on this."

You’ve got no idea what he’s talking about. Your confidence slips. So does your momentum. You say you'll get back to him.

A lack of financial literacy won’t necessarily hold you back. There’s plenty of self-made business people with no business education. The issue often arises with success. You were a great salesmen and an even better marketing director but now you are running the whole shop. There are some things you are expected to know.

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