Building a Cash Culture in Your Business

by Doug Smith, President, The Woodhaven Group

A professor once said, “Cash is more important than your mother.”  You need cash everyday to grow your company. 

To generate that cash the best overall approach is to develop a culture within your company of developing positive cash flow.  How do you do that?  You do it by developing a mindset throughout the company that everyone everyday has an opportunity to generate a dollar here or save a dollar there.  Hard to do?  Not really. Here is one of many tips on establishing  a cash flow culture.

Hold regular monthly employee meetings with one and only one topic—- talking about the success stories of generating more positive cash flow.  Remind the employees of the benefits derived from more cash in the business. Tell them about the new piece of equipment, the new copy machine, or the new ad campaign just kicked off. Explain to them that it was possible  because of all of their efforts in creating  positive cash.

At each meeting ask them to personally hand you a suggestion on how to create more cash flow. You will be amazed at the positive constructive comments you will receive. You will see employees taking ownership of this important area of the business.

Finally,  give out rewards for the “Best Cash Flow Tip of the Month” or the ” Cash Savings Superstar of the Month.” Give a travelling plaque and a check for $50.  Take a photo of your Superstar and send it with a personal handwritten note to the winners family.  Recognition in front of peers and family is one of the best motivators possible.

This whole process reinforces to everyone in the company the importance of generating cash for the company. Plus its fun and exciting!

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