352 Scaling UP! Your Cash Flow

Like you, we all want our water business to be profitable.  Embark on a journey to make your water business not just successful, but wildly profitable! While many believe that sales alone can solve all challenges, the truth lies in understanding the intricate dance of profitability and cash flow. In the wise words of Stephen Covey, "No margin, no mission." We all share the conviction that a thriving business is one that can afford to invest in its people and resources. Even for non-profits, the bottom line remains crucial — successful organizations, whether for-profit or not, need to pay their bills and ensure sustainability. Sales are undoubtedly a driving force, but the misconception that more sales always mean more success can lead businesses astray. Ever witnessed a company sell itself out of business on Shark Tank? It happens when the demand exceeds the capacity to deliver due to a lack of cash flow. Enter the eye-opening world of Profit and Loss statements and explore your business through the lens of the Eight Cash Flow Drivers, outlined in the groundbreaking Entrepreneurial Operating System (EOS) by Gino Wickman. These drivers — Price, C.O.G.S. (Cost of Goods Sold), Margin, Ancillary Sales, Service Time, Errors, Compensation/Labor Costs, A/R Days, and G&A Expenses — form a strategic roadmap to enhance your water business's cash flow and profitability. This new Scaling Up H2O episode unravels the secrets behind these drivers and shows how implementing them can transform your business landscape. Don't miss the chance to elevate your company's profitability starting tomorrow — tune in now to scale up your financial success knowledge! Your friend as you drive from client to client,  Trace Blackmore, CWT   Timestamps 01:00 -  Upcoming Events for Water Treatment Professionals  04:40 - How to know if a conference is worthwhile to attend 05:30 - Showing up with a full cup mentality 10:45 - Trace Blackmore invites you to Scaling UP! Your Cash Flow 39:23 - Drop by Drop With James McDonald    Quotes "Sales for sales' sake can put you out of business" - Mary Kay Ash, the founder of Mary Kay Cosmetics "No margin, no mission." - Stephen Covey, author of The 7 Habits of Highly Effective People   Connect with Scaling UP! H2O Email Producer: [email protected] Submit a show idea: Submit a Show Idea LinkedIn: in/traceblackmore/ YouTube: @ScalingUpH2O   Links Mentioned Ep 204 Being Profitable with the Boilermaker Hamburger Ep 260 Profit First Ep 267 Making a Profit Ep 315 The Intentional Growth Framework with Ryan Tansom Shark Tank TV Show on ABC The Rising Tide Mastermind Scaling UP! H2O Academy video courses   Books Mentioned The 7 Habits of Highly Effective People by Stephen Covey Traction: Get a Grip on Your Business by Gino Wickman What the Heck Is EOS?: A Complete Guide for Employees in Companies Running on EOS  by Gino Wickman   Drop By Drop with James  In this week's episode, we're thinking about what happens when a large steam user in a facility suddenly starts using steam. What happens inside the boiler? How is the steam pressure impacted? How does the water level change in response to this suddenly large steam demand? When is feedwater triggered? What is the impact of this cooler feedwater upon the hotter water inside the boiler? How could this impact steam output rate? Could it cause boiler carryover and why? How could low level alarms be triggered if the high demand continued long enough?    The answers are actually very interesting and interrelated. Spirax Sarco has a nine-part series on YouTube called "The Inside Story." This is a CLASSIC series that every industrial water treatment professional should watch. They actually let you view inside the boiler as steam is being produced and show what happens at low pressures, high pressures, increased demand, etc. If you've already seen the series, they are worth watching again. If you haven't seen it, get your popcorn and pocket protector, because you're in for a treat!  Part 6 addresses the topic of today's Drop by Drop episode on increased demand. I'll be sure to get the links to Trace so he can hopefully include them into the show notes for this episode. Otherwise, if you search for "steam boilers the inside story" in your favorite search engine, you are likely to find the series. Spirax Sarco's Steam Boilers - The Inside Story: Part 1 - Introduction Steam Boilers – The Inside Story:  Part 2 – Basic Boiler Control Steam Boilers – The Inside Story:  Part 3 – Water Level and Gauges Steam Boilers – The Inside Story:  Part 4 – Feed Water Control Steam Boilers – The Inside Story:  Part 5 – Low Pressure Operation Steam Boilers – The Inside Story:  Part 6 – Increased Demand Steam Boilers – The Inside Story:  Part 7 – Very High Demand Steam Boilers – The Inside Story:  Part 8 – TDS Control Steam Boilers – The Inside Story:  Part 9 – Summary   2024 Events for Water Professionals Check out our Scaling UP! H2O Events Calendar where we've listed every event Water Treaters should be aware of by clicking HERE or using the dropdown menu.