Shownotes
Do you understand cash flow? As in, do you really understand your cash flow, or are you just saying yes because you know you ought to?
Alan Miltz, co-founder of Cash Flow Story and co-author of Scaling Up has made it his life mission to help business owners not just understand cash flow, but to use it to avoid growing broke.
Alan’s idea, The Power of One, is that if you incrementally changed your business by 1% or 1 day changes, how long would it take you to achieve your desired financial results? The Power of One, says Alan, is the code of your company.
Why 1? Because everything Alan has developed one common theme - to make the complex simple. He wants business leaders and their teams to learn to love the numbers.
“Revenue is vanity, Profit is Sanity and Cash is king.”
Why might you listen to Alan? Because he’s the chartered accountant who co-wrote Vern Harnish’s book - Scaling Up Rockefeller Habits 2.0.
In today’s episode Alan explains why you need a cash flow ladder for your products or customers. You need to know what the working capital and cash implications are of each dollar of revenue to that customer cohort or for that product. He also discusses the levers that the leadership team should be able to pull to improve cash flow.
To find out more, check out the links to www.cashflowstory.com where Alan’s software resides.
On today’s podcast:
- Cash flow story
- The 7 levers
- Cash flow ladder
- The power of one
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