1. Money Day From Profit to Cash: Over the River and Through the Woods

2. Session Objectives After completing this session, you will be able to: Define the four forces that affect your cash flow Apply a cash flow model to your business and analyze the results Develop a cash flow management plan that works for you

3. From Profit to Cash… The problem with cash flow is that it lags behind profit for most businesses.

4. Activity #1 Populating the Cash Flow Model

5. Forecast profitability first, then the cash flow impacts of that profitability second. Once you forecast cash flow, you can begin to manage it. Use the levers in the model to see future growth. Activity #1 Summary

6. 10 Minutes Break

7. Cash Flow Force # 1: Pay Taxes Cash Flow Force # 2: Pay Down Debt Cash Flow Force # 3: Build to a Core Capital Target Cash Flow Force # 4: Pay Profit Distributions The Four Forces of Cash Flow Ka-Ching!

8. Activity #2 Forecasting Cash Flow

9. Impact of Terms Impact of increasing / decreasing margin Increasing LER Eliminating Non-value added expenses Discuss Value vs. Non-Value added spreadsheet Maximizing Cash Flow

10. The Four Forces of Cash Flow drive the priorities for your available cash Constantly re-forecast Activity #2 Summary

11. Mishandling Deposits Trying to “Bully” the Big Guys Focusing on CF to the detriment of profit Not tracking leading indicators Common Cash Flow Mistakes

12. A good example of a good example Employee-owned Culture of ownership: everyone knows and understands the company’s financials Case Study: Springfield ReManufacturing Corporation

13. A good example of a bad example High-risk cash flow management Lacks culture and cash Case Study: Groupon

14. Profitability and cash are in two different time cycles Leaving cash in the business is a choice Bow to the Four Forces of Cash Flow Session Wrap-Up