Why is it essential for management to strike a balance between profitability and cash flow for sustained business growth?
In this episode, dive into the world of managing a positive cash flow and scaling up businesses with our insightful guest, Peter Kingma. We also explore the impact of different accounting practices on profit and cash flow, the significance of meaningful KPIs, and the importance of understanding cash flow in decision-making.
Peter Kingma works with multinational clients and leads EY Working Capital services in the Americas. Corporate leaders entrust him to help liberate cash through operational improvements, which help in reducing costs and improving service quality. Peter is also the author of Cash Is King.
Key topics that Bill and Peter explore in this episode:
- Different accounting practices and their impact on profit and cash flow
- The significance of measuring the right KPIs and avoiding information overload
- The impact of disputes in billing and payment on cash flow and potential solutions
- Having a "cash culture" in your organization
- Balancing profitability and cash flow management
- Making small changes in processes and operations to improve cash flow and profitability
- Avoiding comparison to industry norms and seeking improvements outside the industry
- How Peter’s book, Cash Is King: Maintain Liquidity, Build Capital, and Prepare Your Business for Every Opportunity, engages with the concept of managing cash flow
- The value of storytelling in explaining technical subjects
- Making strategic decisions regarding inventory and customer credit
Thanks to Peter Kingma for being on the show!
Get Peter’s book, Cash Is King: Maintain Liquidity, Build Capital, and Prepare Your Business for Every Opportunity.
Amazon US: https://amzn.to/3TWYkts
Amazon UK: https://amzn.to/49ogJ6O
Peter on LinkedIn: https://www.linkedin.com/in/peter-kingma
Peter’s website: https://peterkingma.com/
Bill Gallagher, Scaling Coach and host of the Scaling Up Business podcast, is an international business coach who works with C-Suite leaders to achieve breakthrough growth.
Join Bill in the Growth Navigator Coaching Program: https://ScalingCoach.com/workshop
Bill on LinkedIn: https://www.LinkedIn.com/in/BillGall/
Bill on YouTube: https://www.YouTube.com/@BillGallagherScalingCoach
Visit https://ScalingUp.com/ to learn more about Verne Harnish, our team of Scaling Up Coaches, and the Scaling Up Performance Platform, which includes coaching, learning, software, and summit. We share how the fastest-growing companies succeed where so many others fail. We help leadership teams with the biggest decisions around people, strategy, execution, and cash so that they can scale up successfully and beat the odds of business growth.
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This episode was produced by Story On Media & Marketing: https://www.successwithstories.com
