Continuing our cash velocity discussion started on March 16, 2007
Increase Sales cont.
Last time we ended our discussion with this question: So how do you increase your throughput without going into cash trouble?
The first step is to examine your product mix. Calculate the T/CU for each product. With this information you can devise a strategy to sell more products with higher T/CU and drop those with a lower T/CU. This will allow you to maximize your throughput without investing additional capital or having to tie up more cash in the form of raw material.
Then once again, we must decrease our cash-to-cash cycle time which we have already covered.
… to be continued …
Here’s to maximizing YOUR profits!
By Dr Lisa Lang
(c)Copyright 2007, Dr Lisa, Inc. All rights reserved.