$1 Million Check from the Bank for Using a Purchase Card
Can you imagine your banker handing you a $1,000,000 check just for changing the way you pay for purchases? Here’s the real story of how one company did this.
My good friend “Divver” (yes, that’s what we call him) is an incredible banker who is always looking out for his clients. So he took the time and effort to convince a business owner to shift his purchasing habits. The bank had a new purchase card program that gave cash back.
The owner took some convincing to see the wisdom of taking the time and effort to make the shift. The percentage was not much, but Divver knew that it would add up because of the size of the company.
Implementation
For a full year, everything they could possibly put on the card they did:
- Recurring expenses
- Raw materials
- Travel
- Anything and everything they could
The Result?
After the first full year Divver delivered a check for $1,000,000.
- $1,000,000 of cash added to cash flow for the year
- $1,000,000 of bottom line profit
- $1,000,000 for re-investment, distribution, bonuses, or fun and games
Lessons Learned
- You can do more with what you have, you just may not know what the opportunities are or how to take advantage of them.
- The riches are in the niches, even within a company. Find the niches in your company and make yourself rich.
- Focus on profit, not just revenue. A very small percentage of increased margin or decreased costs can have a very large impact on profit and on cash flow.
Are you doing anything to systematically add to your bottom line outside of sales, margins, and basic expense reduction?
I’d love to hear about your activities driving your bottom line or increasing cash flow!
Is there a topic you’d like to learn about?
Contact me at [email protected] to comment, share ideas, or ask me questions about managing your business’ cash.
