When I was a kid, the where’s Waldo books were the hot item. Hidden amongst a group of other characters in cities, crowds, etc. you had to find Waldo. You better believe that it occupied many hours of my childhood and it made my parents incredibly relieved I’m sure.
The problem with where’s Waldo is the fact that the authors intentionally hid the Waldo to make a game out of it. But what made it a really significant challenge was Waldo was always right under your nose where you already looked. He could only be found by looking at the page with a new and fresh set of eyes.
How similar is Where’s Waldo to your businesses financials? How much cash is hiding right under your nose, where you can’t even see it? Would it surprise you to know that in most small to mid market growth companies the hidden cash is significant, to the tune of 5% or more of revenue in an average organization. Quick math shows that’s $250,000 in a firm that does $5 million dollars in annual sales. What would you do with an extra $250,000?
It doesn’t have to be a game of Where’s Waldo to find the hidden cash. A very simple tool called the Power of One and the 7 Levers can first highlight the opportunities and find the hidden cash.
The 7 Levers Are of Cash Flow Are:
Cost of Goods Sold
Inventory/Work in Progress
The next step is to take ask what the impact of a 1% change on each of these would make?
If you’d like a power of one worksheet and quick start guide on how to use it, reach out today. We would be happy to get you going on finding the hidden cash in your business.