Shaking the money tree– finding cash in your business

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Shaking the money tree– finding cash in your business

By Anna MaskerIn standard15th March, 2009

When you are short of cash, do you immediately think of going to the bank for more money?  With banks tightening standards these days it might be best to look inside your business for cash that is tied up in day to day operations.

Remember the saying money doesn’t grow on trees?  Well, let’s pretend for now that it does.

If you wanted to shake some of the leaves off the tree, would you try to shake the trunk?  No, you’d go branch by branch and give each a good shake.  Lo and behold, leaves start falling to the ground.

The trunk-shaking approach is what a lot of business owners take when it comes to cash flow.  They push hard at the trunk, and then give up, thinking they need to go to outside sources to find funding.  Yet, a resourceful individual knows by climbing the tree, and going branch by branch they’re bound to find money right there in the business.

The benefit of shaking the branches is that you flush out a lot of cash that was just “hanging” out there.  Whether it is finding new ways to improve sales, collecting faster on your receivables, reducing inventory or lowering costs, you can shake your money tree and find cash that you didn’t think you had.

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