Homer Massey's Site

"An Businessperson, " Robert Kiyosaki describes in his book 'Retire Young, Retire Rich', is "someone who sees the opportunity, puts together a team, and builds a business that profits from your opportunity. "

I must assure you that without systems in place in your business where things are usually independent of you then you are not running a business - you might be a self employed company.

Now it might appear a tad harsh but it is extremely true and I can guarantee that lack of systematization is going to catch up with you earlier than later.

When 'You' work inside your business you are still working by 'a' business whereas when 'Systems' work- you then have truly graduated to as being a 'Entrepreneur.

Cash management system is fuel towards the 'asset vehicle' you would like to drive and mis-management of it would definitely cost you in terms of lost sales, late payments, bank charges, disruption, ineffective business growth, etc, etc.

I have been by means of many cash mis-management to express that most businesses have got scope of improving 20-50% of cash management in terms of value & timing. So, if you are already running an optimum money management system- I bet there's some small adjustment you can still make that would generate immediate cash for you, Now!

Are you aware regarding fundamentally 6 stages of cash management within your business? On a scale regarding 1-10, how optimised these systems are, 1 being very fragile to 10 being quite strong?

1. Cash Generation - we. e. Sales or other money generating activities. There we want to benchmark the profitability of the project rather than the top-line numbers.

2. Cash Accountancy - This means ascertaining sales - swap of services with cash- involving Invoicing and parking of debt owed.

3. Cash Expenditure: This is the working capital you utilize to finance the project/business procedures.

4. Cash Receipts- This is where we slow up the debt owed to all of us, again more we systemise this kind of activity less time consuming it would be.

5. Managing Debtors- This is where managing not only debt i. e. £ s coming in but in addition the quality as nicely. And as again I'd be showing you inside the 'Cashflow Now! ' system- the more we now have benchmarked this activity - more income we can generate inside our business.

6. Cash Reinvestment /Retention- This really is where most businesses lack a plan and lack of plan means lack of effective reinvestment/retention.

As you can make out any weakness in any of the 6 stages would possess a spiralling down effect around the business.


cash management system