They say cash is the life blood of business. That is why lumpy, irregular cash flow can be a major cause of personal and business stress and anxiety. This is why it is important to understand how the stability and volume of cashflow is driven by  3 cycles.

Days Inventory Outstanding (DIO): How many days, on the average does it take to sell the entire inventory? Ideally, you want to keep this number as small as possible.

Days Sales Outstanding (DSO): How many days on the average does it take to collect on sales? This involves credit sales. While cash-only sales have a DSO of zero, people do use credit extended by the company, so this number will be positive. Again, you want to keep this number as small as possible.

Days Payable Outstanding (DPO): How long on the average does it take the business to pay its own debtors? The company will want to maximize this subject to maintaining a good relationship with creditors.

The total Cash Conversion Cycle (CCC) – a measure of the time span between a business disbursing and collecting cash- is given by the following formula:

CCC = DIO + DSO – DPO

When we work with your business, we generally take some combination of the following 3 approaches.

1. We try find ways to reduce elements of the Cash Conversion Cycle.
2. We look at eliminating waste.
3. Change the Business Model and or advise on implementing new technologies and processes.

Sales minus Expenses equals Profit.

This usually means that to improve profitability you increase sales or reduce expenses.

When you work with us we look at the following areas:

1. Opportunities to increase prices and increase your profit margin.
2. Analyze cost structure  and find opportunities to reduce expenses and eliminate waste.
3. Change the Business Model and or advise on implementing new technologies and processes
4. Increase Leads
5. Increase How Much your customers spend with you
6. Increase How Often your customers spend with you.

Using our Debt Management services we help you resolve credit issues, repay debt and optimize monthly  interest payments. We go through your financial situation, develop an  expenditure budget and an optimal debt repayment plan.

Even when your business is apparently doing well, you may still be paying too much in monthly interest payments. Recent research suggests that as many as 80% of small and medium scale businesses miss the opportunity to refinance their debt.

No matter your situation, we take the time to understand your situation and design customized solutions that best meet your needs.

Business Model review

Assess your current financial situation

Develop a realistic budget

Implement and develop metrics for the achievement of financial goals