Increase Cash Flow In Your Business
Let’s talk about increasing cash flow in your business.
I’ve been coaching business owners to run amazing businesses and achieve financial success for 31 years now. Driving more cash flow to business owners is one of the areas that we help our clients in our Rock Star coaching program.
There are numerous ways to make this happen. We exploit the opportunities that are available, and we understand that these opportunities can change as the business changes.
Joe (not his real name) has a $6-8 million-dollar business in the construction industry. Two years ago, we were introduced to Joe at the Tony Robbins’ Business Mastery program in Las Vegas, where we provided CFO and tax minimization strategies to business owners.
Joe had an amazing year when we met him, with approximately two million in net income. This was after he had bought all the equipment and everything else, he could think of to buy for the next year. The problem this year was the amount of cash required to pay the taxes. His company was growing, and he wanted the cash flow for this continued growth and his personal use.
We were able to eliminate his tax bill that year; yes eliminate! This is without buying anything or spending any cash to “buy down” the tax bill, which saved Joe over $750,000.
It’s now two years later and there is a new challenge. The high profit jobs that Joe had a couple of years ago have been completed and he is back in the “average” range for gross profits. I am not really a fan of average and neither is Joe.
To solve this problem, we began diving into the results of his business, evaluating what was and was not working. This is something we do with our Rock Star program members on a consistent basis.
Our objective was to increase the net income from the level it had dropped to.
We focused on:
- Organizational structure and capacity
- Jobs in progress and potential for growth
- Margins on materials and expenses
Based upon this analysis we were able to develop a plan for the year which allowed for:
- Growth without increasing headcount
- Incremental decreases in expenditures
- Incremental increases in pricing
- Other incremental changes
After these changes were implemented, we were able to double the operating profit percentage for Joe’s company and dramatically increase the cash flow for his business.
To increase cash flow in your business, make sure you stay focused on the metrics that drive your business!
Learn more here about sustained growth and profitability.
When you’re ready to accelerate your business, schedule a call with me.
Have an awesome day!
P.S. Here are some ways I can help you scale your HVAC business:
2. Get a 3-Step Action Plan for 2019
We will help you identify and work through your roadblocks with a 10-minute discovery call. You’ll leave the call with a 3-step action plan for 2019. To schedule a meeting with me, click here.
3. Work with me and my team privately
If you’d like to work with me to take you from 6 to 7 figures of income, email me at Ed@HVACstrategies.com with the subject “Private ” … tell me a little about your business and what you’d like to work on together, and I’ll get you all the details!
Ed Lloyd – Mentor to HVAC Businesses
(704) 831-7000 | Ed@HVACstrategies.com | www.HVACStrategies.com