In This Episode
Cash is one of those things that whether you have it or not it’s usually top of mind. If you don’t have cash you’re thinking about how you’re going to get it. If you have cash you might be worrying if it’s enough or if you will run out. Either way, chances are you’re going to be aware of it and thinking about it.
One of the dirty secrets of small business is that cash can often be found hiding in your business…if you know where to look. During the first meeting with all of our new coaching clients we have them present their financial statements. We do this because it helps us understand where they are as it relates to their understanding of their financials. We also do it to help them identify where cash might be hiding in their business.
Unfortunately we find most small business aren’t as familiar with their financial statements as we’d like. Worse yet, we rarely find financial statements for small businesses showing an accurate depiction of where the business stands, especially when it comes to the Balance Sheet. If that’s the case with you, it’s going to make it harder to find where cash might be hiding in your business.
During the show today we shared several examples of where cash is likely hiding in your business. We covered some of the more common ones like Accounts Receivable and Accounts Payable, but we also dove into some areas that might be overlooked including debt repayments and distributions. Jack also shared a story about a company he purchased where he was able to uncover about $65,000 in cash in the first few days of owning the business. We have shared a link below to our podcast from December 2018 when Jack shared more detail about this story of purchasing Cleveland Armature.
People, Companies and Resources We Mentioned in the Show
- Sandler Sales Institute and “Let’s Pretend” (https://www.prnewswire.com/news-releases/answering-questions-with-questions-300559112.html)
- Jack Buying Cleveland Armature (https://dirtysecretsofsmallbusiness.com/episode/how-did-jack-buy-his-first-company/)
- Caddyshack (https://www.imdb.com/title/tt0080487/)
Google will randomly select some text from the post (usually the first paragraph but not always) to display as a short summary in the search results. Google usually displays about 156 characters (it varies base on the size or each character). It can be longer, but Google will only display the first 156 characters.
Join Us Next Time
Join us next week when we will chat about figuring out if you should work with your spouse or not when it comes to your business!