Coffee Time with Marie Torossian Episode 30 : Unlocking the Secrets to Business Valuation and Cash Flow Management
Key Concepts Discussed
1. Importance of Sales and Pricing:
• Sales and proper pricing strategies are crucial for business success.
• The connection between income statement, balance sheet, and cash flow management.
2. Cash Flow Management:
• Cash flow is the lifeblood of any business.
• Proper management of inventory, receivables, and vendor relationships is essential.
• Shortening the cash conversion cycle to optimize liquidity.
3. The Role of Processes and Systems:
• Implementing efficient systems and processes is vital for sustainable growth.
• Internal processing timelines and their impact on cash flow.
• Tracking Key Performance Indicators (KPIs) to assess business health.
4. Preparing for Business Valuation:
• In-depth financial analysis and clean financial records are key to business valuation.
• Investing in systems, especially related to receivables and inventory management, significantly enhances business value.
• Business owners need to think of their business as an asset and invest strategically for maximum returns during a sale.
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