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.

Cash Flow Relief for Independent Consultants: the CARES Act & Other Ideas

Successful Independent Consulting

This article explains your options for cash-flow relief, whether you need it immediately or in the near future, and how to get it. There are several ways to get some cash-flow relief to help you pay your bills in the near term as a result of the $2 trillion CARES Act: 1.

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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.

5 Ways to Stimulate Cash Flow in a Downturn

Harvard Business

Be generous with customers — and aggressive with near-term revenue and expenses. Financial management Digital Article

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.

The financial impact of COVID-19 on health systems and how CFOs are responding

McKinsey

In McKinsey’s Health System Financial Resilience Survey, CFOs and finance executives of health systems indicated that they are expecting a dramatic impact on both operating margin and cash flow.

How to Make Your Consulting Joyful (Again)

David A Fields

On the other hand, if your consulting firm’s workload has dipped, you’re fretting over the new business pipeline and combatting fears about cash flow, expenses, and the effects of a recession.

A 5-Day Plan to Keep Your Company Afloat

Harvard Business

CEOs experiencing negative cash flow need to act fast. Managing organizations Strategy Digital Article

A primer in resilience: A conversation with Kevin Carmody

McKinsey

Having a resilience plan in place can set a company apart from its competitors while simultaneously improving cash flow and strengthening the balance sheet.

Value over volume: Shale development in the era of cash

McKinsey

Despite rising production, most US shale producers are showing negative free cash flow. To improve capital efficiency, they need to optimize development strategies for economic value, not volume. Oil & Gas Insights

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

Paths to profitability in US unconventionals

McKinsey

After years of high growth, the US unconventionals sector has yet to deliver cash flow or returns to investors across the full cycle. To achieve profitability, shale producers will need to transform their organizations and shift their strategic focus from growth to value creation.

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.

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.

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?

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?

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.

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 ).

Driving Sustainable Growth at an Inflection Point

Brimstone Consulting

Further, many key operational mechanisms, such as cash flow, roles and responsibilities, market strategy, financing, inventory management, were not yet in place. CASE STUDY. Revenue increased by 34 times.

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.

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.

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?

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.

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

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.

The Corona Virus for Small Businesses

Consultant Journal

Take a look at your cash flow and what a change to sales or staffing could do. How should small business owners manage the corona virus, aka COVID-19 ?

Be Aggressive

CaseInterview.com

Restructuring costs to improve free cash flow can be learned. When times get difficult, it’s natural to want to step back, play defense, and wait for conditions to get better. This is especially the case when difficult conditions are caused by extreme changes, such as COVID-19.

Marketing Guidelines for Professional Services Firms During the Covid-19 Pandemic

Prudent Pedal

Cash is king. Marketing agencies don’t need to be talking about cash-flow, CARE or FMLA. I offer 6 simple marketing guidelines for professional services firms during the COVID-19 pandemic that will build your reputation—or at least protect it until it’s over.

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.

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 ).

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.

Vaping and other Naïve Actions

Martinka Consulting

There’s a lot of discretionary cash to cover my debt (are your mortgage, car, tuition, utility payments discretionary? To cover debt you need “real” cash flow after a fair market salary). There was a recent news story about a Seattle area law enforcement officer suing for about $11 million because of a health condition caused by vaping (a CBD product and something else to relieve his stress and pain). Am I missing something?

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.

What is Your Real Income

Martinka Consulting

About 15 years ago I started using the term “free cash flow,” which is pretty much the same as what’s above. I’m working with a private equity firm to find add-on HVAC, plumbing, electrical, or refrigeration companies for their plumbing construction firm in the Seattle area (so if you know of any doing at least $5 million in sales who want an investor let me know). The founder of the PE firm has a distinct term for the earnings/income of a company. He calls it “real income.”