David C. Barnett

So I'll give you an example of where people fall off the wagon with this. If you are a successful and profitable business, I saw this once with a fireplace business, like a wood stove business. They were very profitable. They did very well over the years. And they were always going out and installing these new wood stoves in people's homes. And they had these various stove pipe fittings.

So I'll give you an example of where people fall off the wagon with this. If you are a successful and profitable business, I saw this once with a fireplace business, like a wood stove business. They were very profitable. They did very well over the years. And they were always going out and installing these new wood stoves in people's homes. And they had these various stove pipe fittings.

So I'll give you an example of where people fall off the wagon with this. If you are a successful and profitable business, I saw this once with a fireplace business, like a wood stove business. They were very profitable. They did very well over the years. And they were always going out and installing these new wood stoves in people's homes. And they had these various stove pipe fittings.

So there was like a 90 degree angle and a 45 degree angle and a three foot piece and a two foot piece. And all this stuff kind of plugs together. When they install these wood stoves. And you have to sit down and make a plan of the person's home and what pieces you need.

So there was like a 90 degree angle and a 45 degree angle and a three foot piece and a two foot piece. And all this stuff kind of plugs together. When they install these wood stoves. And you have to sit down and make a plan of the person's home and what pieces you need.

So there was like a 90 degree angle and a 45 degree angle and a three foot piece and a two foot piece. And all this stuff kind of plugs together. When they install these wood stoves. And you have to sit down and make a plan of the person's home and what pieces you need.

And so if you don't have the pieces in stock, you then have to make a plan of what you're going to need next week so you can order it and have it delivered. That takes work. So do you know what you do, Charles, if you have a lot of money? You just order a pallet of every part there is. Right. And then your technicians just wander into the warehouse and just pick up whatever they need, right?

And so if you don't have the pieces in stock, you then have to make a plan of what you're going to need next week so you can order it and have it delivered. That takes work. So do you know what you do, Charles, if you have a lot of money? You just order a pallet of every part there is. Right. And then your technicians just wander into the warehouse and just pick up whatever they need, right?

And so if you don't have the pieces in stock, you then have to make a plan of what you're going to need next week so you can order it and have it delivered. That takes work. So do you know what you do, Charles, if you have a lot of money? You just order a pallet of every part there is. Right. And then your technicians just wander into the warehouse and just pick up whatever they need, right?

But while that is easy, what it also does is it then creates this huge investment in inventory. And from the look of your financial statements, it now appears that the business requires 70 or $100,000 of inventory to operate. When in reality, you could be ordering these parts the week before you need them, right?

But while that is easy, what it also does is it then creates this huge investment in inventory. And from the look of your financial statements, it now appears that the business requires 70 or $100,000 of inventory to operate. When in reality, you could be ordering these parts the week before you need them, right?

But while that is easy, what it also does is it then creates this huge investment in inventory. And from the look of your financial statements, it now appears that the business requires 70 or $100,000 of inventory to operate. When in reality, you could be ordering these parts the week before you need them, right?

Und so wird ein Verkäufer dieses Unternehmen anschauen und sagen, oh, es gibt dieses große Inventar-Investment, dieses große Handelskapital-Investment, das Teil der Funktion dieses Geschäftes ist. Wenn in der Realität, wenn du diese Inventar entfernt hast und angefangen hast, mehr von einem Zeit-in-Zeit-Mechanismus zu nutzen,

Und so wird ein Verkäufer dieses Unternehmen anschauen und sagen, oh, es gibt dieses große Inventar-Investment, dieses große Handelskapital-Investment, das Teil der Funktion dieses Geschäftes ist. Wenn in der Realität, wenn du diese Inventar entfernt hast und angefangen hast, mehr von einem Zeit-in-Zeit-Mechanismus zu nutzen,

Und so wird ein Verkäufer dieses Unternehmen anschauen und sagen, oh, es gibt dieses große Inventar-Investment, dieses große Handelskapital-Investment, das Teil der Funktion dieses Geschäftes ist. Wenn in der Realität, wenn du diese Inventar entfernt hast und angefangen hast, mehr von einem Zeit-in-Zeit-Mechanismus zu nutzen,

and you did this a couple of years before you sold, you could then demonstrate that the business is very nimble and does not require a lot of operating capital, right? And so laziness ends up making financial statements look worse off than they could be Because people choose the easy way. Same thing with receivables. If you don't need the money, you don't get on your customers.

and you did this a couple of years before you sold, you could then demonstrate that the business is very nimble and does not require a lot of operating capital, right? And so laziness ends up making financial statements look worse off than they could be Because people choose the easy way. Same thing with receivables. If you don't need the money, you don't get on your customers.

and you did this a couple of years before you sold, you could then demonstrate that the business is very nimble and does not require a lot of operating capital, right? And so laziness ends up making financial statements look worse off than they could be Because people choose the easy way. Same thing with receivables. If you don't need the money, you don't get on your customers.

The receivables get later and later. I've seen businesses operate with 45 days of average day sales outstanding. New owner comes in. They based all of their decision making and deal making on that 45-day DSO. They come in and they tell the customers, from now on, we're only accepting credit cards within five days of invoice.

The receivables get later and later. I've seen businesses operate with 45 days of average day sales outstanding. New owner comes in. They based all of their decision making and deal making on that 45-day DSO. They come in and they tell the customers, from now on, we're only accepting credit cards within five days of invoice.