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.
