Monthly Archives - August 2019

How to Benefit from Cash Conversion Cycle (CCC)

How fast can you grow your business? This depends on how well you convert your sales into cash-in-hand. Is this conversion slow? You will need cash from other sources to fund your growth in sales volume and pay expenditures. Some expenditures will be for goods and services, others for capital items. The Cash Conversion...

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How to Improve Cashflow Acceleration

A healthy cashflow is a major contributor to your business’s ability to survive and grow. Do you want to harness the power of your cashflow to grow your business?  Are you struggling to pay bills when they fall due? Speeding up cashflow can help with both these goals. Cashflow Acceleration discusses how you...

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How to Use Gross Margin Analysis

Gross Margin Analysis: Lets you diagnose problems caused by changes in Income and/or Variable Costs. Income and Variable Costs can move in different directions, or in the same direction, at different speeds. This can make it hard to work out what is causing an upturn or downturn in your business. The analysis tips...

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How Gross Margin Analysis Boosts Profit Explained

Gross Margin Analysis opens the door to understanding the complex interactions between Revenue, COGS (Cost of Goods Sold or Operating Expenses) and Gross Profit.  It can be hard to understand why (e.g.) Revenue is going up but Gross Profit is going down!  Gross Margin also lets you measure the...

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Overhead Margin Analysis Explained

Overhead Margin relates to Overhead Costs, which are the costs in your business that do not change directly with a change in your Revenue and/or a change in your Cost of Goods Sold (COGS). They include such things as: Rent, insurance. Interest. Salaries of permanent staff. Administration costs in general; telephone, office costs. Some elements of...

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C4.1 Turnaround30: Rapid Stabilisation of a Business in Trouble

Many businesses, both large and small, hit tough times and often don't survive. If you are experiencing tough times, this article examines methods of (1) Rapidly stabilising your business and then (2) Turning around, a business that is experiencing a tough patch.  It is designed to carry out within a 30 day...

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How to be a Cashflow Wizard

One of the powerful lessons we can learn from Legendary Cashflow wizards is how they use “other people’s money” to painlessly finance the rapid growth of their businesses.  Amazon grew gangbusters for many years using its suppliers’ funds; and it did it without paying income tax.  It’s well worth seeing if...

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