by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion… Deceasing sales commission is not necessarily where we want to focus either, but make sure that the commission you’re paying is in alignment with where you’re making your money and/or with the products/services with the...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion, let talk about Increasing Throughput. Throughput (as defined in Goldratt’s Theory of Constraints Throughput Accounting) is sales revenue minus truly variable costs. Therefore we can increase your throughput by either 1)...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
I’m currently working on a book “Increasing Cash Velocity”. Goldratt doesn’t cover cash flow and it’s not even included under the topic of Throughput Accounting. It is however, one of the most important topics for business owners. 80% of...