The E-Myth Mastery Program
Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080
Bank Account Valuation Worksheet
What’s the Value to Your Bank of Your Checking Accounts?
The money in your checking accounts is used by your bank to fund its lending to businesses
and households. If it didn’t have your “free” money, it would have to “buy” money on the
open market and pay interest for it. So your “free” money is actually worth to the banker what
they would otherwise have to pay. You can look that up in the financial section of your
newspaper or in the Wall Street Journal. Look for the rates for “Fed Funds” or “commercial
paper” which are two money market sources of funds for banks, and are a good indication of
their “cost of funds,” which is the value to the bank of your deposit balances. Here’s the
formula:
YOUR AVERAGE BANK’S COST OF
BANK ACCOUNT X FUNDS = OF YOUR BANK
BALANCES
12 MONTHS
What’s the Value to You of Your Excess Bank Balances?
You need enough money in your business checking accounts to cover all the payments you
make plus a reserve for contingencies. Anything over that is “excess” and could be put to
better use in your company, earning interest from your bank, or paying for banking services.
The lowest earning rate you’d get from your bank would be their “earnings credit rate” so
that would be a way to measure the minimum value of your “excess” money. If you don’t
know your bank’s earnings credit rate, use the rate they pay on business savings accounts.
Here’s how you calculate the value of your excess balances:
1. Calculate your average daily deposits for a
month (from your bank statement(s)). Add up
all your deposits for a typical month and divide
by the number of days in that month.
2. Calculate your average daily payments for a
month (from your bank statement(s)). Add up
all your payments for a typical month and
divide by the number of days in that month.
3. Subtract your average daily payments from
your average daily deposits.
4. From that amount, subtract a prudent, but not
excessive, cash reserve.
5. The result is your average excess balance.
6. Obtain the bank’s earnings credit rate or its business savings account rate (it’s an annual interest
rate, so divide by 12 to get the monthly rate).
7. Multiply your average excess balance by the bank’s monthly earnings credit rate.
8. The result is the minimum monthly value to you of your excess bank account balances.
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“Maximum Cash” The E-Myth Mastery Program “Maximum Cash”
Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080 Page 5
reduce the expense to get a benefit, for instance, when you can
slow payment or pay over a longer period of time.
5. Improve productivity. The never ending opportunity for any
business owner or manager is to improve business systems and
the efficiency of the people and other resources used in the
business. Profit increases are an obvious result, but improved
cash flow can be every bit as important in a growth period.
6. Optimize timing. When it comes to cash, you may not be
able to do anything about the amount of cash you receive or
pay out, but you can still benefit from the right timing. Think
“stretching,” “accelerating,” or “just-in-time.”
n Stretching payments means delaying payouts or paying
MONTHLY VALUE them over an extended period of time. It’s a good way to
ACCOUNTS TO conserve cash, but pay careful attention to your
YOUR BANK
relationships with vendors and other third parties, and be
sure that you’re not losing the benefits of discounts or
incurring unnecessary interest or other “penalties.”
n Accelerating receipts means receiving payments due to
you sooner (maybe even in advance) or over a shorter
period of time. Again, make sure you’re not giving up
more than you’re getting.
n Just-in-time means receiving supplies, services, and other
goods just as you need them rather than “stockpiling”
them in inventories. JIT (just-in-time) requires you to
plan ahead, and to manage your business systems
precisely so you always have the resources you need when
THE VALUE OF YOUR “EXCESS” BANK
ACCOUNT BALANCES you need them, and no later. With JIT you run the risk of
interrupting your business if you run out of materials or
+ AVERAGE DAILY DEPOSITS services, but you also benefit from cash flow that more
– AVERAGE DAILY PAYMENTS precisely matches your business processes.
– CASH RESERVE
Not all of these opportunities for improving cash power exist in
= AVERAGE EXCESS BALANCE
x EARNINGS CREDIT RATE (monthly) every business, and they take differing forms in different businesses.
You’ll have to see what works for your situation in your business.
= MINIMUM VALUE OF YOUR EXCESS
BANK BALANCES Those are the general rules. Let’s look at how to apply them to
the situations most often found in small businesses.
Wringing Cash out of Your Balance Sheet without
Shutting Down Your Growth
You need cash to fuel your growth, but if you’re too aggressive
about it, you can cut into productive assets and slow down the
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no
unauthorized copying, adaptation, distribution or display is permitted.
The E-Myth Mastery Program “Maximum Cash” The E-Myth Mastery Program “Maximum Cash”
Module 10: E-Myth Money: Forward-Looking Finance Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080 Page 4 Business Development Process: FN-0080

Six Rules for Creating Cash Power

Cash Power Checklist
So how does this work? How do you wring the maximum cash Use this checklist to determine: 1) where cash is ‘hiding’ in your business, and 2) how to speed
power out of your business? There are six rules: up its flow. This checklist is just the beginning. No checklist could comprehensively cover all
cash-generating possibilities for all businesses. But it’s a good start.
1. Decrease assets
2. Increase liabilities or capital Bank Accounts
3. Increase revenues
n What is the average amount in your bank accounts? $ ____________
n What is the “typical” high balance in a “typical” month? $ ____________
4. Decrease cash expenses

n What is the “typical” low balance in a “typical” month? $ ____________

5. Improve productivity
6. Optimize timing
Most business owners think only in terms of increasing n Typically, how many times are your bank accounts overdrawn in a month? ___________
revenues and decreasing expenses, but, as you can see, there are n What amount of average balances do you need in your bank accounts to cover your average
many more ways to skin this particular cat. payments? $ __________ (Unless you keep extensive, precise records of receipts and
There are pitfalls and risks associated with each rule, and payments, you may have to do some “educated guessing” here.)
n Do you maintain “reserve balances” (extra money in your accounts “just in case”)? How
differing ways to get maximum cash from differing businesses.
1. Decrease assets. Simply decreasing assets can be foolish. much is that? $ ____________
n Can you reduce your “reserve” balances?
You employ your assets to conduct your business, and
decreasing them indiscriminately, while that will free up
n Smaller reserves?
cash, can also cripple your business. So the idea is to reduce
assets, but do so in a way that doesn’t hurt your business.
2. Increase liabilities or capital. Increasing liabilities or n Use credit lines for reserves?
capital gives outsiders – lenders, vendors, or investors – a
n Do you have excess bank balances? Typically, how much? $ ___________
greater claim on your business. That can reduce your
control, reduce the income you receive from the business, n Do they earn income for you?
n Do they pay for banking services?
and can have other undesirable effects. Of course, if you, as
the owner, pay in more equity capital or make loans to the
business, there is no effect on your control, but it is money n Do you monitor your bank accounts daily?
n Do you use bank services that improve your cash flow?
out of your pocket, and that can be burdensome. The one-
time inflow of cash may or may not be worth its side effects.
3. Increase revenues. Growing revenues is often the most n Zero balance (daily investment) accounts
n Interest-bearing checking and business savings accounts
desirable way to increase cash power, but it usually takes up-
front cash to generate the revenues, which is the reason you
need the cash in the first place. In this case, your strategy is n Electronic banking
n Lockbox services
usually to increase prices (be careful!), speed payment, or
even arrange for payment in advance.
4. Decrease cash expenses. Reducing any expense has the n Remote disbursement accounts
n Other accounts _____________________________________________
effect of increasing profits, but cutting cash expenses – those
expenses paid out in cash – has the added benefit of
increasing your cash power. Often you don’t even have to n Have you discussed with your banker how the bank could help you improve your cash flow?
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an
unauthorized copying, adaptation, distribution or display is permitted. unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted.
The E-Myth Mastery Program “Maximum Cash” The E-Myth Mastery Program “Maximum Cash”
Module 10: E-Myth Money: Forward-Looking Finance Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080 Business Development Process: FN-0080 Page 3

Accounts Receivable
n What is the dollar amount of your accounts receivable? $ ____________ The “flows” of cash through your business are quantified on your
n What percentage of your accounts receivable are:
income statement – revenues and cash expenditures – and are
speeded up or slowed by your business operations – the
____ % current (zero to 29 days) productivity and efficiency of your staff, technology, and
business systems.
____ % 30 to 59 days past due
You’ll see how to release the cash in your business in a moment,
____ % 60 to 89 days past due but first take a look at this idea of “cash power.” Think of it as a
____ % 90 days or more past due form of momentum.

n What is your average “days receivable”? ____ days “Cash Power” Is the Financial “Momentum” of Your Business
n How much cash is released for each day you reduce your days receivable? $ _______ “Momentum” is the result of both speed and size. A bullet has
n What days receivable is acceptable? ____ days (This is your goal.)
tremendous power even though it weighs less than an ounce.
The faster the bullet flies, the greater its impact. It gets power
n How much cash will be released into your business when you reduce your days receivable from its speed. But an avalanche also has tremendous power. It
to your goal? (existing days receivable - goal days receivable = # of days reduced.) Then may move slowly, but it’s huge, and it derives power from its
calculate, (# days reduced) X ($’s per day). mass. The idea of momentum is that the larger an object is and

n Can you do any of the following to reduce your accounts receivable?

the faster it’s moving, the greater its momentum, its power.
And that’s the idea of the “cash power” of your business. The
n More aggressive collections more cash you have at your disposal, and the faster it moves

n More restrictive credit approvals (fewer sales on credit terms)

through your business, the greater your financial momentum,
your cash power.
n More frequent review of accounts receivable to detect late paying customers sooner So cash power is what happens when you get more cash by

n Sell accounts receivable to a factoring company

releasing it from the stocks that appear on your balance sheet,
and when you also move cash through your business faster by
n Other _____________________________________________________________ accelerating the flow of cash through your business operations.
BALANCE SHEET: “STOCKS” of CASH
Inventories
Identify (in dollars) each significant kind of inventory in your business and follow the checklist for each of them.

n What is the average dollar amount of the inventory? $ ___________

DEPOSIT ACCOUNTS INVENTORIES EQUIPMENT & ACCOUNTS DEBTS
ACCOUNTS RECEIVABLE (decrease) FACILITIES PAYABLE (increase)
(decrease) (decrease) (decrease) (increase)

n What is the “days of inventory”? ____ days

n What dollar amount of cash is released by reducing the inventory by one day? $ ______ CASH POWER
n Without compromising your ability to produce, how many days could you reduce this
inventory? ____ days REVENUES CASH PURCHASING STAFFING & LABOR BUSINESS

n How much cash would that release? $ ___________

(increase) EXPENSES (decrease or (decrease staff SYSTEMS
(decrease) change terms) or raise productivity) (raise productivity)

n Is just-in-time production a possibility? BUSINESS OPERATIONS: “FLOWS” of CASH

n Can you redesign the operation to eliminate idle inventories (points in the operation at

This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
his document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no
unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted. unauthorized copying, adaptation, distribution or display is permitted.
The E-Myth Mastery Program “Maximum Cash” The E-Myth Mastery Program “Maximum Cash”
Module 10: E-Myth Money: Forward-Looking Finance Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080 Page 2 Business Development Process: FN-0080

which materials and partially completed items “just sit there”)?

weren’t coconuts at all but the eyes of an elephant. The hanging
vine, not a vine, but a snake, or the tail of a hidden monkey. The Equipment and Facilities
n Do you have a current inventory of the equipment, facilities, and real estate in your
fan-like fern, not a fern, but the spread tail of a peacock. If you
knew how to look at the picture, the animals revealed themselves
– some obvious, some obscure, but all visible if you knew how business? You should. It should indicate which items are owned and which are not owned,
to look. and for each owned item, its balance sheet value (acquisition cost less accumulated
depreciation), and its approximate market value.
It’s like that with hidden cash in your business. Accounts
receivable, inventories, accounts payable, and other assets are n What is the market value of the equipment owned by your business? $ __________
n Do you have any idle equipment or facilities that you won’t need in the short- or mid-term?
pools of cash waiting to be tapped if you know how. Your
revenues and your operating expenses are streams of cash
running through your business, some draining it (you can reduce If so, sell it immediately.
the drain) and others nourishing it (you can increase the What is the approximate market value of this equipment? $ _________
n Do you have any underutilized or obsolescent equipment or facilities?
“nourishing” flow).

n Can you reorganize systems with underutilized equipment or facilities to eliminate some or
Think of Stocks and Flows…Lakes and Rivers of Cash
How do lakes differ from rivers? Rivers move. Lakes just sit all of it? What is the market value of items you can eliminate? $ _______
n Can/should you replace obsolescent equipment or facilities? (Will the acquisition costs,
there. Rivers are “flows” of water. Lakes are “stocks” of water.
They’re both made of water, they just behave a bit differently
from each other. Stocks and flows. If you want to make a lake less proceeds from sale of the old items, be justified by savings and/or productivity
larger, you either increase the flow from rivers that feed it or you increases?) What are the “up front” cash flow requirements of making such changes, and
decrease the outflow from rivers that drain it. More importantly what are the ongoing cash flow results?
for those who depend on the lakes, you can increase the Up front net cash flow: $ ___________ (one time)
availability of water by either increasing the flow, which reduces
the size of the lake, or increasing the speed with which water Ongoing cash flow impact $ __________ (monthly)
n For “big ticket” equipment and facilities, is it desirable to generate cash through a “sale and
flows into and through it. If you have complete control over the
rivers emptying into the lake and those draining the lake, you
leaseback” arrangement? Explore the possibilities with commercial finance companies.
don’t need the lake at all; you simply need to control the inflows
and outflows so you have the water you need when you need n Approximately how much cash could be made immediately available through sale and
it…“just in time” water. leasebacks? $ __________
You see where all this is headed, of course. The stocks and flows
n What would be the monthly lease payments? $ __________
of water in nature are an exact analogy for cash in your business.
Your business has stocks and flows of cash, and you can control n Approximately what dollar value of growth or productivity improvements would be
them in ways that reduce your need for cash, that release hidden generated by the cash proceeds from the sale/leaseback? $ ___________
n Would the monthly payments be justified by the growth or productivity increases funded
cash, and that increase the “velocity” of cash through your
business, thus releasing the “cash power” available to you.
by the cash generated?
n Can you “outsource” to third parties any operations that require equipment or facilities?
The “stocks” of cash in your business are recorded on your
balance sheet – accounts receivable, accounts payable,

n Approximately what would be the dollar savings, if any, of using a third party to do this
inventories, equipment, facilities, real estate, investments, debts –
each represents something real in your business. Each “account”
on your balance sheet also represents a lake of cash that either work? $ __________ monthly

n Approximately how much cash could you generate by divesting your company of the
soaks up cash, immobilizing it and making it unavailable for use
in growing your business, or, if you know how it’s done, can
release cash to use elsewhere in your business. equipment and facilities currently devoted to the work to be outsourced? $ ________

This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an
unauthorized copying, adaptation, distribution or display is permitted. unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted.
The E-Myth Mastery Program “Maximum Cash” The E-Myth Mastery ProgramTM
Module 10: E-Myth Money: Forward-Looking Finance
Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080 Business Development Process: FN-0080 Page 1

n Would the cost of outsourcing be justified by the one-time cash inflow plus the ongoing “Maximum Cash”
savings of operating costs?
Unleashing the cash power in your business
Accounts Payable
n What is the dollar amount of your accounts payable? $ ____________ “I’ve noticed that people who don’t respect money don’t have any.”

n What is your average “days of payables”?

– J. Paul Getty, business executive
____ days
n How much cash is released for each day you increase your days of payables? $ _______ Growth Requires Cash
n What days of payables is desirable? ____ days (This is your goal.) Do you remember the idea that cash is the lifeblood of your
n How much cash will be released into your business when you increase your days of payables to business? It’s never more true than when your business is
your goal? (days reduced X dollars per day of payables = $ cash released) $ _______ growing. The faster the growth, the more cash you need. And

n Can you do any of the following to increase your accounts payable?

even if “growth” for you is getting better rather than getting
bigger, it still takes cash.
n Renegotiate agreements and terms with suppliers If you’re getting bigger, it takes cash to gear up your lead

n Make installment payments

generation and lead conversion, and to build your inventories
and set up your client fulfillment systems to serve the greater
n Make exclusive/long term arrangements in return for pricing or payment concessions
business volume that growth will bring. If you’re getting better,
it takes cash to fund your development work, establish quality
n Discuss possibilities with each supplier to generate ideas for stretching your control improvements, and create customer service systems.
payments. Where will you get the cash you need to grow?
Debt You’ll either look internally to get the most out of your
n What is the dollar amount of your short and long term debts (not trade payables)? $ _______ business’ resources, or you’ll look externally to find ways to

n Have you taken advantage of all internal sources of cash?

bring in outside funding. Fact is, you’ll probably do both.
This booklet looks internally. It shows you how to get
n Have you really taken advantage of all internal sources? “maximum cash” from your assets and business operations by

n Only then, consider increasing your loans and lines of credit.

increasing your “cash power.” That way, even if you do have to
use outside funding sources, you can minimize your external
cash needs and minimize the costs of obtaining funding from
Revenues outsiders. You start by understanding where cash is hidden in
n Are there opportunities for increasing your prices? your business and knowing how to free it up to fuel your

n Are there opportunities for increasing the “velocity” of your revenues (earlier payment,
growth.

quicker payment) without disrupting customer relationships? You Have More Cash than You Think You Do…Probably a Lot More
n Payment in advance There are two places cash hides in your business – in your

n Cash payment
assets and in your business operations. You have to understand
a few basic ideas to find it. It’s like those picture puzzles you
n Reduced payment terms for trade receivables played with when you were a kid.

n Accept credit cards and debit cards for sales

Remember, for example, the picture of a jungle scene in which
you were supposed to find the “hidden” animals? If you
n Substitute credit card sales for trade credit or installment sales weren’t looking for animals, all you saw was a simple jungle

n Use direct deposit or “auto draft” to speed payment

scene. But if you knew you were looking for hidden animals,
you looked at the picture a different way…the two coconuts
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no
unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted. unauthorized copying, adaptation, distribution or display is permitted.
The E-Myth Mastery Program “Maximum Cash”
Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080

n Electronic payments

Expenses
n What are your typical monthly cash expenses (exclude non-cash expenses)? $ _________
n Are there opportunities to cut cash expenses?
n Do you have a systematic way to continually review operational systems and improve
productivity, thus decreasing expenses and increasing the flow of cash?
n Can you “downstream” some work to customers, thus reducing your expenses?
n Can you change (increase) non-cash expenses in order to reduce taxes and boost cash flow?
n Depreciation of plant and equipment
n Amortization of research and development expenses
n Accounting for inventory costs
n Have you asked your accountant for advice on how to use accounting decisions to boost
cash flow?

Purchasing
n Typically, how much cash do you disburse monthly to suppliers? $ ____________
n Do you have a list of your suppliers and the key terms of the purchasing arrangements you
have with each? (You should, and your list should have an indication of how important
your relationship is to each, thus giving you an idea of how much negotiating “leverage”
you have with them.)
n Have you met with each of your suppliers to discuss possibilities for arrangements that will
help you increase your cash power?
n Volume discounts
n Large purchases
n Smaller repeat purchases that accumulate to large purchases
n Just-in-time purchasing (smaller purchase amounts, precisely timed to be received
when you need them)
n Commitment for long-term relationships in exchange for price and payment term
concessions

This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an
unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted.
 “Maximum Cash”
“Maximum Cash”
The E-Myth Mastery Program
Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080

n Adding “upstream” value (can your suppliers take on some of the work and add value Unleashing the cash power in SNAPSHOT
that you currently do in-house?)
your business The E-Myth Mastery ProgramTM

n Adding “downstream” value

Module 10: E-Myth Money: Forward-Looking Finance
Business Development Process: FN-0080

People “I’ve noticed that people who don’t respect money don’t have any.”
n Do your employees have a “sense of urgency” about cash? Do they pay attention to
– J. Paul Getty, business executive

anything that will speed money into the business and retard its flow (ethically and
Key Points
honestly) out of the business?
n Is your employee turnover minimal (thus minimizing employee acquisition and training Overview There are six rules for increasing your cash power:

costs)? 1. Decrease assets

n When you decide to hire a new employee, do you first consider how to do the work
Cash management is
the process of
eliminating excess (idle)
without having to hire, but by improving a system? Do you have a systematic way of cash and making the
insuring that the non-hire alternative is seriously considered?
most productive use of
2. Increase liabilities or capital
3. Increase revenues
4. Decrease cash expenses
Benchmarks for
5. Improve productivity

n Do you understand, and have you quantified, the seasonality of your business, its peaks and
the cash within your Maximizing
business. Cash takes 6. Optimize timing of receipts and disbursements Your Cash
valleys, and the variability of workload in terms of staffing? two forms: stocks and Always, always consider the impact on your business

n Do you staff with permanent employees for your ongoing base level of work, and only use
flows.
“Stocks” of cash are
recorded on your
expensive overtime and temporary employees for short-term increases of work?
n Does your management system include the ongoing measurement of employee productivity
balance sheet – Make your accountant your ally. He can help you find
accounts receivable,
accounts payable,
and a systematic way to determine when productivity is substandard and either the inventories, equipment,
facilities, real estate,
employee needs to be retrained or let go, or the system needs to be improved?
investments, and debts.
They’re “pools” of cash
Business Systems waiting to be tapped if
of decreasing assets or increasing liabilities; the cash Identify Where
benefits may not be worth the impact on the business Cash Is “Hiding” in
or its customers and suppliers. Your Business
ways to increase your cash power if he knows that’s
Decide How You’ll
what you want.
Increase Your Cash
Power
Implement
Changes and Monitor

n When designing and/or evaluating your business systems, do you explicitly consider ways
you know how. Cash Closely
“Flows” of cash through
to maximize the cash impact of the system? your business are
BALANCE SHEET: “STOCKS” of CASH
n The amount of cash generated and consumed by the system
shown on your income
statement – revenues

n The speed with which cash, or the cash value of material, flows through the system
and cash expenses (but DEPOSIT ACCOUNTS INVENTORIES EQUIPMENT & ACCOUNTS DEBTS
ACCOUNTS RECEIVABLE (decrease) FACILITIES PAYABLE (increase)
not non-cash (decrease) (decrease) (decrease) (increase)
expenditures). They’re
the result of the
Summing It Up productivity of your

Looking at all the possible changes you might make, what would be the cash impact if you were to implement
people, systems, and
technology.
CASH POWER
them all successfully, with the dollar impacts you estimated in this checklist? Some of them would be one- “Cash Power” is financial
time releases of cash (e.g. selling idle equipment, reducing your days receivables by 5 days) and some REVENUES CASH PURCHASING STAFFING & LABOR BUSINESS
momentum. It’s both the (increase) EXPENSES (decrease or (decrease staff SYSTEMS
would have an ongoing cash flow effect (e.g. improving a production system, getting payment checks amount of cash flowing (decrease) change terms) or raise productivity) (raise productivity)
deposited to your bank accounts one day quicker, upstreaming costs to suppliers). If you weren’t able to through your business
estimate a dollar impact for some items, take your “best guess” and include those figures. and the velocity with BUSINESS OPERATIONS: “FLOWS” of CASH
n What is the total one-time release of cash into your business if all the items you checked on
which it flows. Anything
that increases cash or A Business Development Publication of
speeds its flow adds to
this checklist turn out to be feasible? $ __________ your cash power. E-Myth Worldwide
n What is the ongoing, monthly increase in cash flow generated if all the items you checked The arrow-shaped
Putting the Pieces Together
TM

diagram shows how

on this checklist turn out to be feasible? $ __________ per month various parts of your Santa Rosa, California, USA
business contribute to
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without
This document is confidential and proprietary to E-Myth Worldwide and cannot be used, disclosed or duplicated without the prior written consent of E-Myth Worldwide. This is an your cash power. the prior written consent of E-Myth Worldwide. This is an unpublished work protected by federal copyright laws and no
unpublished work protected by federal copyright laws and no unauthorized copying, adaptation, distribution or display is permitted.
unauthorized copying, adaptation, distribution or display is permitted.