Accumulating Cash Gives a Company Superpowers

accumulate cash

Does your top line revenue growth strategy specifically call for accumulating cash? In other words, increasing sales–the top line–is not enough. Your sales need to generate an excess of revenue minus expenses, what is known as profit. Not by accident, on purpose! And not minuscule, but substantial.

Cash on hand gives the company superpowers! With cash on hand you can:

  • Spend enough on marketing  to stand out above the crowd
  • Invest in amazing customer service
  • Dedicate people to design and develop new offerings
  • Invest heavily in client appreciation of your perfect/great fit buyers
  • Expand vertically to capture the before and after market

Two factors decrease cash on hand: your pricing model (not enough profit built in) and your policy on tax reduction (reduce EBITDA to reduce taxes). Both of these limit cash accumulation.

Building cash on hand will do more to grow your business than any other decision you can make. What are you going to change, starting now?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.