Michael Zipursky on Cash Flow Diary Podcast

Consulting Success

Michael was recently featured on Cash Flow Diary. ” On a recent episode of Cash Flow Diary podcast with Jay Massey, I take you through my story — and all of the lessons I’ve learned along the way.

Profit vs. Positive Cash Flow

CaseInterview.com

They’re obsessively concerned that their sales growth will be too low to generate enough cash to pay the bills. However, if you truly understand accounting and the relationship between the cash flow statement versus the profit and loss statement, it is totally possible to go bankrupt by growing too fast. When revenue is collected, that’s called positive cash flow. In every McKinsey engagement, there’s a moment when the senior client says to us, “Hmm.

Yes, Cash Flow is Important

Martinka Consulting

For PE firms, cash flow, EBITDA, and low cap ex are very important.” Cash flow – one of my rules for both business buyers and sellers is, “Cash (and cash flow) is King.” ” Small businesses need timely cash flow. In the March 2014 edition of Mergers & Acquisition magazine there was a quote that compared public companies and Private Equity Groups.

What a Business Financial Statement Can Tell You About the Health of Your Business

Tom Spencer

Business Strategy balance sheet business planning cash flow statement financial statements income statementWhen you run your own small business, it can be difficult to keep an objective distance from what you do. Bills come in, sales go out, you have your day-to-day goals and you watch the curvy line of profit and loss make its inexorable progress throughout the financial year.

Transform Your Consulting Business with Financial Management Visibility

Management and IT Consulting

How consulting firms can manage cash flow with better precision and streamline accounting processes rapidly

When sustainability becomes a factor in valuation

McKinsey

Sustainability efforts are material to investors only to the extent they affect cash flows. What matters depends on the industry. Our Insights

A future for mobile operators: The keys to successful reinvention

McKinsey

By transforming their networks and operations with the newest technologies, mobile operators could double their cash-flow conversion within five years. Our Insights

Asset Management – Valuation (Part 2 of 4)

Tom Spencer

There are a couple of reasons for this: Asset managers can see cash flow and earnings fluctuate wildly with markets. For very good periods of performance that management feels may not continue, they may choose to park cash opportunistically or repurchase shares.

When You’re In Over Your Head…

Martinka Consulting

It doesn’t matter if it’s beer, widgets, aerospace, or something else, manageable growth with attention paid to margins and cash flow is what you want. And, whether personal or business, manage your debt, your cash flow, and your growth so you don’t fall off the cliff. AB InBev, which makes one out of every four beers sold worldwide and owns hundreds of brands is selling assets in Australia, Asia, and Central America.

The 2 Missing Steps to Good Strategy Execution

LSA Global

An Example – A Strategic Objective to Increase Cash Flow. Let’s take an example of a strategic initiative to increase cash flow. Is the concept of cash flow crystal clear to all employees? Are the current and desired levels of cash flow clear?

Case Math

Tom Spencer

Net Present Value: The NPV of an investment is the present value of the series of expected future cash flows generated by the investment minus the cost of the initial investment. Perpetuity: A perpetuity is a constant stream of identical cash flows with no end.

Is It Time to Consider a Fixed Fee for Your Consulting Services?

Successful Independent Consulting

It’s also easier to bill in installments, including a down payment, so you can get cash flowing sooner. Generally, the more experience you have as an independent consultant, the more likely you should move from billing by the hour to a fixed fee.

How to avoid a sales slump after a busy period

MBO Partners

Without proper planning, this can mean lots of excess stock on the shelves, poor cash flow, and a myriad of other consequences. Most merchants know that busy sales periods like the holiday season or promotional periods are often followed by a sales slump. Insights & Analysis Productivity

Do you have assets?

Tom Spencer

These might include things like cash, inventory, property, plant and equipment. Looking at it this way, assets will be resources that increase in value or generate cash flow. (Source: Flickr ). When can you consider something that you have to be an asset?

Surviving in a Procyclical Industry

Tom Spencer

During economic downturns these prospective clients typically have less money, or more uncertain cash flows, and so are less likely to spend money on consulting services. (Source: Flickr ).

Mergers & Acquisitions: Valuation

Tom Spencer

Valuation of discounted expected future cash flows. If the goal is diversification, then calculating the present value of future cash flows would be appropriate (DCF valuation). “Price is what you pay. Value is what you get.” ” ~ Warren Buffett.

How I Became a Millionaire as an Independent Consultant

Successful Independent Consulting

As an independent consultant, cash flow is erratic. I always had the cash I needed to make my quarterly tax payments, and at the end of the tax year I usually had about $25,000 to put into my SEP-IRA. (A

Do you have assets?

Tom Spencer

These might include things like cash, inventory, property, plant and equipment. Looking at it this way, assets will be resources that increase in value or generate cash flow. (Source: Flickr ). When can you consider something that you have to be an asset?

What’s Worse Than an Owner Dependency?

Martinka Consulting

An owner who should be keeping customer relationships tight, managing cash flow, motivating his people, etc. The company does $15-20 million in annual sales and the owner has taken a fancy to being “one of the guys.” He thinks it’s fun. And I’ll bet it is fun. The problem is a top customer commented to one of the management staff about this, as follows: “We’ve never seen anything like him.

Balancing the Scale

Tom Spencer

Increasing production tends to lead to higher cash flows, and managers who were previously focused on production, innovation and bottom line results start to shift their focus towards turf battles and extreme careerism. Scale improves productivity but also increases bureaucracy.

Why Life Insurers and Asset Managers Must Join Forces to Win

BCG

The result: investments are managed opportunistically as each faction seeks to optimize its own favored KPI quarter by quarter—whether it is cash flow, earnings, solvency, market risk exposure, rating requirements, or investment performance.

Time and Money

Tom Spencer

Companies will of course need to keep an eye on cash flows, but important strategic decisions should not be held hostage by the quarterly earnings report. (Source: Flickr ).

Martinka Consulting - Untitled Article

Martinka Consulting

He knew cash flow. Or should we say he knew short-term cash flow. He watched his cash flow like a hawk. A December 2, 2016 Wall Street Journal article was titled, “ Car Sales Roll Along; Aided by Discounts.*” The gist of the article was sales are up over the same month a year earlier and the average discount was 11%, versus 9.4% in 2015. This reminded me of a story I tell in a couple of my talks.

Trust Based Business

Tom Spencer

Corporate executives and senior managers who studied discounted cash flow models and the CAPM model as part of expensive MBA programs from prestigious institutions of higher learning never stopped to learn the value of human connection, or the value of generating customer delight. I recently bought a coffee from Quarter Horse Coffee , my new favorite Oxford coffee house.

Greece Will Default in May Without Another Bailout or Change in Terms

MishTalk

Cash flow analysis shows Greece is in serious trouble again in spite of having a current account surplus. Greece Bailout Cash Flow Even this game is in trouble now as Greek Cash Flow Charts show.

Setting Up a Foundation for Consulting Success

Successful Independent Consulting

Avoid a full-time or long-term lease so you can keep your expenses as low as possible, especially in the beginning when cash flow will be tighter.

Business Book Review: Boston Consulting Group On Strategy

Management Consulted

The focus here is completely on cash flows and not projections. Cash Flow of a Product – It’s an excellent study on rules of cash flow if you’d like to know more on the performance of products and the effect it has on sales at each stage in production. Welcome to yet another opportunity to gain valuable insights from a book review, written by Preeti Vemu, MC intern, MC events organizer extraordinary, and an ex-Deloitte consultant.

Need Clients Now? 5 Strategies to Quickly Get More Consulting Clients

Consulting Matters

However, there will be times when you have to feel the cash flow pressure and need to find clients.right now! If you want to achieve sustainable success as a consultant - ideally you want to create a marketing system to ensure you have a consistently full pipeline of right-fit clients.

Don’t Drive (Your Business) Over the Curb

Martinka Consulting

It’s tough managing 50 people instead of 15 or handling cash flow at a level beyond what the line of credit allows for. Owners travel a road every day and their road has curbs. The wider the road the better. Last month I wrote about customer concentration, a dangerous curb that significantly narrows the road (decreases value). Another important one is growth, or the lack thereof. What are some of the common reasons for a lack of growth?

Due Diligence by Management Consulting Firms

Tom Spencer

The investment bankers assess current and projected future cash flows to determine how much debt they can take on, service, and pay down.

Fool Me Once Or Fool Me All The Time

Martinka Consulting

A 1932 research paper showed firms had loaded up with cash and post-crash, “companies were flush with cash and investors beleaguered,” which they wouldn’t pay out. Zweig writes that any form of modified profit isn’t cash flow. I get the feeling many people, even in my industry, don’t understand the difference between profit, Ebitda, and cash flow.

Need Clients Now? 5 Strategies to Quickly Get More Consulting Clients

Consulting Matters

However, there will be times when you have to feel the cash flow pressure and need to find clients.right now! If you want to achieve sustainable success as a consultant - ideally you want to create a marketing system to ensure you have a consistently full pipeline of right-fit clients.

Taking Greater Risks to Enjoy Greater Rewards with David Baker: Podcast #14

Consulting Success

A successful entrepreneurial enterprise yields profit consistently, while those who find that they are constantly having cash flow problems are, in reality, the ones that are having legitimate business problems.

The cereal entrepreneur

Seth Godin Blog

Happiness is positive cash flow, and the easiest way to get there is to decrease your spending. One of the biggest shifts of giving up a paycheck to start a new venture is the fact that you gave up a paycheck. An entrepreneur who is sleeping on a friend’s couch and eating corn flakes for breakfast, lunch and dinner is in far better emotional shape than the one who’s the primary support for a family of four in a fancy house in Scarsdale.

The Cost of a Startup

Martinka Consulting

Buyers do more than get a profitable platform with customers, employees, and cash flow. Seattle Magazine did an analysis of the costs of opening a 2,000-square foot restaurant and the total costs ranged from $671,000 to $856,000, with, as you’d expect, about 90% of the costs for architects, construction, furniture, fixtures, and equipment. The remainder of the costs were the first week’s labor, food, beverages, etc. Sounds similar to other industries.

Economies of Scope - Tom Spencer consulting blog

Tom Spencer

More stable cash flows are attractive for three reasons. Secondly, a strong cash position can also be used to extend credit to customers and thereby increase sales. About. Book Shop. Archive. Definitions. Helpful Links. Quotes. Subscribe. Economies of Scope.

Ignore the Balance Sheet at Your Own Risk

Martinka Consulting

The balance sheet is filled with information, some of which is: How does the company manage its cash flow and what level of working capital is needed? Is the owner bleeding the company of cash for personal use? A number of years ago I worked with an investment group. The president was a very experienced and very good operator but somewhat new to the deal process.