A Growing Company Needs The Cash

Funds are central to expansion.

Outstanding companies have three to ten times more cash in reserve than their more mediocre competitors.

If you want to expand your cash reserves, take a look at your Cash Conversion Cycle (CCC). This figure shows how long it takes until a dollar you invest comes back as turnover. The shorter the better.

To shorten your CCC, focus on 4 components – sales, delivery, billing/payment, and production/inventory and work separately on them. You’ll find opportunities to shorten your cycle time.

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