Result Delivered: A precise, actionable model to stop cash burn, stabilize operations, and generate positive cashflow within 30–90 days.
HABIT 1 — Growing Revenue Without Managing Working Capital
Why this reduces cashflow:
Most companies chase revenue but ignore the operational heartbeat:
- Inventory grows faster than sales
- Receivables stretch beyond 45–60 days
- Payables are paid too early
- Production runs ahead of orders
- No cash conversion discipline
The Leadership Mistake:
Confusing profit with cash.
THE STRATEGY FOR TURNAROUND:
The Cash Conversion Accelerator (CCA-30)
1. Receivables Compression (Get cash in)
- DSO target: 30–35 days
- AI risk scoring for customers
- Pre-invoice transparency
2. Inventory Release (Free trapped cash)
- Eliminate slow movers
- Apply 80/20 SKU prioritization
- Predictive reorder points
3. Payables Optimization (Control cash out)
- Negotiate net-45/60 terms
- Group suppliers for volume leverage
- Introduce approval workflows
Result Delivered:
+15–30% cashflow improvement in 30–60 days.
HABIT 2 — Expanding Costs Faster Than Value
Why this destroys cashflow:
- Hiring without productivity gains
- Growing SG&A with no ROI
- Overbuilt infrastructure
- Shadow IT systems
- Spending justified by “growth” instead of value
The Leadership Mistake:
Pegging budget to last year instead of need.
THE STRATEGY FOR TURNAROUND:
The 3-Level Smart Cost Reset (SCR-3)
Level 1 — Cut Waste (immediately)
- Remove non-core subscriptions
- Eliminate duplicated work
- Collapse unnecessary meetings & roles
Level 2 — Rebuild Value (30 days)
- Assign KPIs to every cost center
- Identify value gaps
- Automate repetitive tasks
Level 3 — Scale Efficiency (90 days)
- AI-enabled workflows
- Outsourcing non-core activities
- Cloud-first operations
Result Delivered:
SG&A -10 to -20% while increasing performance.
HABIT 3 — Selling Products Instead of Outcomes
Why this reduces cashflow:
Product-based selling has:
- Low margins
- High churn
- High acquisition cost
- No recurring revenue
- Weak customer lifetime value
The Leadership Mistake:
Focusing on price, not value.
THE STRATEGY FOR TURNAROUND:
The Recurring Revenue Shift (RRS-24)
1. Move from Transaction → Subscription
Examples:
- Maintenance-as-a-Service
- Calibration-as-a-Service
- Analytics-as-a-Service
2. Introduce Performance Guarantees
Customers pay for uptime, speed, reliability — not units.
3. Build a Retention Engine
- Predict churn signals
- Personalize value delivery
- Review quarterly performance KPIs
Result Delivered:
Stable monthly income → predictable cashflow → long-term customer lock-in.
THE EXECUTIVE 15-SECOND VERSION
- Manage working capital → unlock cash
- Reset costs → increase operating efficiency
- Build recurring revenue → stabilize the system
Result Delivered:
A sustainable, measurable, 90-day cashflow turnaround.
