News & Story Ideas
Fred Parrish, CEO of The Profit Experts™, shares the most common ways businesses lose money and tips for how to plug the leaks to boost cash flow, the “lifeblood” of business.
Most CPAs are bright and capable but they are not trained to focus on the “operational intelligence” business owners need to make crucial decisions in a timely way. Fred discusses how to spot cash flow problems looming in the future and avoid financial disaster.
Too often companies do not pay enough attention to cost control until they run out of cash. By then it’s too late to take the action to avoid the problem. And anyone who has ever tried to raise capital knows that the worst time to get cash from lenders is when you desperately need it. Fred discusses how companies can avoid an unforeseen cash crisis through disciplined planning.
Managing cash should be an obvious priority when a company is not performing well, however companies in fast growth mode also face cash flow dangers. Fred shares six warning signs that your company may be headed for trouble.
From his book “The Profit Mentality: The Method for Making Every Decision a Profitable Success,” Fred explains how people at all levels of organizations can develop a “profit-oriented frame of reference” to avoid pitfalls that can lead to disaster in any business.
Cash and profit are not interchangeable. Since companies can’t actually “spend” profits, they must have sufficient cash available to fund operations until conversion occurs. Fred tells why generating cash is the most important aspect of profit management, and why converting profit into cash in the shortest possible time should be a goal of every organization.
Fred discusses his partnership with Michael E. Gerber, author of the E-Myth series who is known as the World’s #1 Small Business Guru, for an upcoming book.
Fred shares predictive management solutions companies can use to focus on the future and avoid cash flow mistakes that could cause them to go under.
Fred and The Profit Experts developed MyFranchiseCFO.com™, an information technology and financial services firm geared toward franchise owners. He explains how franchise owners can use Financial Intelligence, Predictive Management™ and CFO Coaching Services to discover their full profit potential.
Actively managing your lending relationship is critical to your company’s success. “As with any relationship, trust is a major issue,” Fred says. “You must communicate with your bank officer often and with as little ‘spin’ on the truth as possible. The more often your story is proven true by actual results, the more trust you gain from the bank. Unfortunately, the opposite is true as well.”
Fred tells how company leaders can avoid getting drawn into buying overpriced and unnecessary technology. “There is absolutely no need to consume company resources for the sole purpose of having the most current technology unless there is a clear benefit to the operation,” he asserts. The key to making smart decisions is to match purchases to both the current and anticipated needs based only on the company’s operating plan.
Employee turnover may be the most misunderstood and underestimated expense in business. Fred explains the three major ways turnover affects the bottom line, and how to minimize profit- and productivity-sapping personnel losses.
Understanding the breakeven concept can help company owners quickly determine where to focus their attention to improve financial performance and reach their profit potential. Fred explains how.
Fred reveals how regularly reviewing accounts receivable, deposits and refunds can help companies free up hard cash when they need it.