How do you improve infrastructure to manage cash flow?

A CEO wants to improve management of his company’s cash flow. While this is particularly important during times of tight cash and rapidly changing market conditions, the CEO wants to know what others focus on when monitoring cash flow in their companies. How do you improve infrastructure to manage cash flow?

Track project mix and margin contribution both in part and in total. To accomplish this estimate relative contribution margins of different project types.

Adjust sales targets and commissions to emphasize projects with higher contribution.

Segment the company’s business model by margins, overhead, and cash flow. Set targets and drive focus on profit per “X” (selecting the proper indicators).

Start with broad projections, and refine the analysis over time.

As understanding is improved, formulate value propositions which reflect the most advantageous cash flow contributors of the business.

May your business prosper. More detail on this topic at https://ceo2ceos.com/2024/02/how-do-you-improve-infrastructure-to-manage-cash-flow-seven-points