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Revenue is Vanity, Profit is Sanity, Cash is King – Alan Miltz Denver ScaleUp Summit

Posted by Douglas A Wick on Mon, Nov 12, 2018

ScaleUp Summit 2018Cash in your business provide Oxygen (a business can breathe easily when it’s not focused on worries over cash to make payroll, pay bills on time, invest in people or capital investments ) and Options.  When you have great cash flow you have options other businesses don’t.

Alan Miltz, an authority on Cash Flow, shared Revenue is Vanity, Profit is Sanity, Cash is King

I found a short video (2:27) that shares Alan Miltz short presentation to our ScaleUp Summit audience in Denver.

Advance to the 1:03 mark to get Alan’s take on what’s the most important focus of every CEO

The Power of One 

The Power of One (1%) is a principle that can have significant positive (or adverse) impact on your Cash Flow Story. Alan Miltz, one of our Gazelles Faculty Members and Contributing Thought Leaders, (along with his colleagues) has identified 7 key financial variables that companies can directly influence AND that strongly impact cash flow.

Two important questions arise:

  1. How would your cash flow improve if you increased any or each of these by 1% over a period of time?
  2. Of these 7 key financial variables, which ones most influence your company’s cash flow?

The Power of One Video here provides a more in depth sharing of how to manage your cash flow : 

The 7 most influential and impactful financial variables related to the Power of One (1%) are:

  • Price,
  • Volume,
  • Cost of Goods Sold,
  • Accounts Receivable,
  • Accounts Payable,
  • Inventory (Turns), and
  • Overhead Expense.

You can put these principles and tools to work now in your company by doing a Leadership Team Exercise on the Power of One (1%). Contact dwick@positioningsystems.com to help you conduct this exercise with your team.

CASH - The Power of One Cash Flow Story (IP)Document (or estimating if you do not have your current nor last year’s financial statements with you) your Net Cash Flow and EBIT (Earnings Before Interest and Taxes) for the past rolling 12 months or previous fiscal reporting year.

Collaborate as a team and discuss the impact of a 1% increase in the 7 key areas that drive your Power of One.

Then, as a team, estimate the positive impact on your Net Cash Flow and EBIT over the coming 12 months (or over the new fiscal year). What could these improvements do for your business if you took action on the Power of One (1%)?

Wondering how this might work in your business?  Visit POWER OF ONE (1%): 7 KEY FINANCIAL VARIABLES YOU CAN INFLUENCE. Scroll to the end of the blog and find EXAMPLES in bold letters to read three short paragraphs on how a commercial & retail furniture company used the Power of One to turnaround a significant profit loss into a gain in just 5 months using this tool

Acheive Execution Excellence BP Guarantee posterGrowth demands Strategic Discipline.

Positioning Systems is obsessively driven to improve your business and your teams execution at work.  3 Strategic DisciplinesPriorityMetrics and Meeting Rhythms help your business dramatically improve your forecasting, individual and team performance to create alignment. It empowers your team to achieve accelerated growth.

As an Execution Decision, Strategic Discipline increases your businesses Profitability. As Alan Miltz explains in his videos, profit produces cash flow!

Positioning Systems helps your business achieve these outcomes on the Four most Important Decisions your business faces:

FOUR DECISIONS

DECISION

RESULT/OUTCOME

PEOPLE

HARMONIOUS CULTURE OF ACCOUNTABILITY

STRATEGY

TOP LINE REVENUE GROWTH

EXECUTION

PROFIT

CASH

OXYGEN OR OPTIONS

We help your business achieve Execution Excellence.

Positioning Systems helps mid-sized ($5M - $250M) business Scale-UP. We align your business to focus on Your One Thing!  To achieve growth, you need to evolve in today’s rapidly changing economic environment.  Have you been avoiding a conversation on how you can successfully grow your business? Contact dwick@positioningsystems.com to Scale Up your business! Take our Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.

NEXT BLOG – ANNUAL PLANNING/TEAM WORK5 Dysfunctions of a Team.jpg

Last week I was in Phoenix Arizona facilitating Annual Planning for one of my customers leadership teams.  They attended the ScaleUp Summit in Denver. We completed Patrick Lencioni’s Five Dysfunctions of a Team, immediately following the Summit.  One of the Outcomes of the 5 Dysfunctions Exercises is to develop a theme to improve Accountability and Results.  I’ll share their Theme, how powerful they found it, and why it’s how they’ve decided to being every meeting they have.

Topics: Cash Decisions, The Power of One, ScaleUp Summit Denver, ScaleUp Summit Learning, Alan Miltz, Cash

Challenges of Scaling Up a Business 

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1. Priorities: Determine your #1 Priority. Achieve measurable progress in 90 days.
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Certified Gazelles Coach

Doug Wick, President

Positioning Systems

 

The Strategic Discipline Blog focuses on midsize business owners with a ravenous appetite to improve his or her leadership skills and business results.

Our 3 disciplines include:

- Priorities
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- Meeting Rhythms

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