Last year, 1,000 of the biggest U.S companies unlocked a combined $72 billion from their balance sheets, according to the Wall Street Journal’s review of a survey conducted by Hacket Group. We’re not talking about cash flow from operations. We’re talking solely about their balance sheets. An average of $72 million each – generated by working hard to speed the collection of receivables; improve inventory turns and thereby reduce total inventory on hand; selling equipment and other tangible assets that aren’t being used; and stretching vendors (accounts payable) a little further.
You can do this, too. The result can be a permanent cash windfall that costs you not a nickel in taxes. Use it to pay down debt, take home to your family or maybe just survive ’til things turn around.
This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.
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