CASH
Get More Cash from Your Business
Most owners already push on collections and stock. The cash they overlook usually sits in assets bought once and forgotten, and in working capital that grows faster than sales.
Mohammed NizamCEO and Principal Consultant, Mission Means Consulting
IN BRIEF
- 01 Walk the business with the asset register and check how much each major item is really used: vehicles, machines, warehouse space and office floors.
- 02 For anything idle there are four options: sell it, rent it out, move it to a branch or project that would otherwise buy new, or lease next time instead of buying.
- 03 Track working capital as one figure, what customers owe you plus stock minus what you owe suppliers, and compare it with sales every month.
- 04 When that percentage creeps up, cash is getting stuck: customers paying slower, stock piling up or suppliers paid early. It shows there before it shows in the bank balance.
TRY THIS
Work out working capital as a share of sales for each of the last six months. A rising line is where to look first.
Read the full article on LinkedIn
This page is a short brief. The full piece by Mohammed Nizam is in the Mission Means Insights newsletter.
Read on LinkedIn
See it in practice
CASE STUDY 01 · LOGISTICS
32 days
cut from the average collection period
Logistics company: cash back under control, and a structure built to grow
Read the case study
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