7 symptoms of a business that is thirsting for cash. When you cannot borrow more and your customers do not pay you fast enough, how do you keep the business running? Try this. If it worked for the others, why not you ? Check it out.

1. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Banish waste
&
Create wealth
Accelerate cash flows. De-risk the business.
1Thursday, 18 April 13

2. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Business challenge
MARGIN
PRESSURE
Delayed
receipts
Advance
release
Cost
Escalation
Yield
reduction
2Thursday, 18 April 13

3. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Business challenge
Our proposition: Refresh our perspectives!
MARGIN
PRESSURE
Delayed
receipts
Advance
release
Cost
Escalation
Yield
reduction
2Thursday, 18 April 13

4. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
7 Symptoms of cash constraint
1. Delayed payments to vendors and employees.
2. Ad hoc borrowings from Non Banking sources.
3. Mounting interest burden on borrowings.
4. Penalties on late payments and disputes.
5. Increase in ‘other income.’
6. Delayed release of refunds, commissions & credit notes.
7. Reserves used up to meet ‘nasty surprises.’
Core issue : Expenses run ahead of cash flows!
3Thursday, 18 April 13

5. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
STRATEGIC GOAL
Who wants to fund a
Sustainable long term growth
with
Daily cash inflow ?
Olympic mindset : Faster. Higher . Farther
4Thursday, 18 April 13

6. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com
5Thursday, 18 April 13

7. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com
5Thursday, 18 April 13

8. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com
5Thursday, 18 April 13

9. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
Annual
Turn over
` 5 Crores
• LostVolume
• LostValue
•LowVelocity
Quarterly
waste
estimate
` 2 Crores
www.shekarsan.com
5Thursday, 18 April 13

10. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Signals:Time based metrics
1. Lead time for new offerings
2. Order maturity lead time
3. Order acceptance rate
4. Rate of schedule adherence
5. Delivery lead time(TAKT)
6. Touch time
7. On Time Fulfillment Rate
Key: Match weekly cash flows to meet commitments
6Thursday, 18 April 13

11. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Tangible results
• Operating efficiency:Throughput
• Rate of Value added per hour
• Conversion efficiency:Turns
• Sweat the working capital
• Capital efficiency: Investment
• Weed out non performing assets
Don’t focus on costs. Capitalize on timing
7Thursday, 18 April 13

12. © All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Accelerate cash flows. De-risk the business.
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8Thursday, 18 April 13