Signs of the Times - July 2017 - 18

AT LARGE
DAREK

JOHNSON

FAST(ER) MONEY

is ST's Editor-at-Large.
Email him at darek.johnson
@stmediagroup.com.

PHOTOS BY DAREK JOHNSON

It's not how fast you make money; it's how well you
make money fast.
"Transforming a revenue culture into
a profit culture is no small task. All
functions, from sales to marketing to
operations - must join in the effort.
But once your firm's processes and
metrics are based on an integral
perspective, you'll be one step closer
to a simpler and more profitable
business."
-HBR Guide to Finance Basics
for Managers
Harvard Business Review Press
UCH of a successful business practice involves pastdue collections, but not
the cash conversion cycle;
that is, how soon you get your shop's
money - the working capital spent
for materials - back into your bank.
Harvard Business Review (HBR) writers Karen Berman and Joe Knight, in
their book Financial Intelligence for
IT Professionals, offer advice on the
cash conversion cycle, the amount of
time occurring between the manufacturing and collection cycles.
Their principle is straightforward:
Accelerate the turnaround time
between the buying of materials for
a contracted sign and the day you
get paid for the sign. Essentially, until
paid, your materials cost becomes
an unsecured loan to the sign buyer
and, odds are, your estimate included
profit but not interest on that materialscost "loan."
In one sense, the (nonexistent) loan

M

18

SIGNS OF THE TIMES

JULY 2017

Large-scale jobs may require subcontractors who require immediate
payment, which further extends your cash investment - and risk - in the
project. Strong contract agreements for payment are one way to reduce
your risk, but a substantial deposit and/or pre-arranged payment stages
during the fabrication and install process are even better.
interest is a cost of doing business;
however, knowing the cash conversion
cycle is vital because an interval
reduction means you get your money
back sooner. Thus, a faster turnaround

enhances your shop's cash flow.
Generally, a positive cash flow
indicates the company is profitable
because there is - should be? -enough
cash flowing through the system to



Table of Contents for the Digital Edition of Signs of the Times - July 2017

Signs of the Times - July 2017
Contents
From the Editor
St Update
At Large
Tech Review
Leds + Lighting
Vehicles + Vinyl
A Monumental Influence
The 2017 State of the Industry Report
Building Safer Signs
Strictly Commercial: Sign Magic
New Products
Advertising Index
Last Look
Signs of the Times - July 2017 - Intro
Signs of the Times - July 2017 - BB1
Signs of the Times - July 2017 - BB2
Signs of the Times - July 2017 - Signs of the Times - July 2017
Signs of the Times - July 2017 - BD_L
Signs of the Times - July 2017 - BD
Signs of the Times - July 2017 - Cover2
Signs of the Times - July 2017 - 1
Signs of the Times - July 2017 - Contents
Signs of the Times - July 2017 - 3
Signs of the Times - July 2017 - 4
Signs of the Times - July 2017 - 5
Signs of the Times - July 2017 - 6
Signs of the Times - July 2017 - 7
Signs of the Times - July 2017 - From the Editor
Signs of the Times - July 2017 - 9
Signs of the Times - July 2017 - St Update
Signs of the Times - July 2017 - 11
Signs of the Times - July 2017 - 12
Signs of the Times - July 2017 - 13
Signs of the Times - July 2017 - 14
Signs of the Times - July 2017 - 15
Signs of the Times - July 2017 - 16
Signs of the Times - July 2017 - 17
Signs of the Times - July 2017 - At Large
Signs of the Times - July 2017 - 19
Signs of the Times - July 2017 - 20
Signs of the Times - July 2017 - 21
Signs of the Times - July 2017 - Tech Review
Signs of the Times - July 2017 - 23
Signs of the Times - July 2017 - Leds + Lighting
Signs of the Times - July 2017 - 25
Signs of the Times - July 2017 - 26
Signs of the Times - July 2017 - 27
Signs of the Times - July 2017 - Vehicles + Vinyl
Signs of the Times - July 2017 - 29
Signs of the Times - July 2017 - 30
Signs of the Times - July 2017 - 31
Signs of the Times - July 2017 - 32
Signs of the Times - July 2017 - 33
Signs of the Times - July 2017 - 34
Signs of the Times - July 2017 - 35
Signs of the Times - July 2017 - A Monumental Influence
Signs of the Times - July 2017 - 37
Signs of the Times - July 2017 - 38
Signs of the Times - July 2017 - 39
Signs of the Times - July 2017 - 40
Signs of the Times - July 2017 - 41
Signs of the Times - July 2017 - The 2017 State of the Industry Report
Signs of the Times - July 2017 - 43
Signs of the Times - July 2017 - 44
Signs of the Times - July 2017 - 45
Signs of the Times - July 2017 - 46
Signs of the Times - July 2017 - 47
Signs of the Times - July 2017 - 48
Signs of the Times - July 2017 - 49
Signs of the Times - July 2017 - Building Safer Signs
Signs of the Times - July 2017 - 51
Signs of the Times - July 2017 - 52
Signs of the Times - July 2017 - 53
Signs of the Times - July 2017 - 54
Signs of the Times - July 2017 - 55
Signs of the Times - July 2017 - Strictly Commercial: Sign Magic
Signs of the Times - July 2017 - 57
Signs of the Times - July 2017 - 58
Signs of the Times - July 2017 - 59
Signs of the Times - July 2017 - 60
Signs of the Times - July 2017 - 61
Signs of the Times - July 2017 - New Products
Signs of the Times - July 2017 - 63
Signs of the Times - July 2017 - 64
Signs of the Times - July 2017 - 65
Signs of the Times - July 2017 - 66
Signs of the Times - July 2017 - 67
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Signs of the Times - July 2017 - 92
Signs of the Times - July 2017 - 93
Signs of the Times - July 2017 - 94
Signs of the Times - July 2017 - Advertising Index
Signs of the Times - July 2017 - Last Look
Signs of the Times - July 2017 - Cover3
Signs of the Times - July 2017 - Cover4
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