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How to Make Wiser Business Decisions that Boost Cash Flow in Your Business, Even While Flying Through Turbulent Business Skies

So you’re cruising along, navigating the expected but manageable turbulence, as you and your team work hard to grow your business rapidly. But somewhere along your flight path, you may encounter really serious turbulence, including lightning, heavy rains, diminished visibility, and wind shear (and, of course, the occasional asteroid). In other words, you may encounter a financial or other business crisis. And it can happen when you least expect it.

For instance, did you know that nearly half of all businesses are caught off guard by a cash flow crisis? Yup, you heard that right. According to the QuickBooks State of Cash Flow Report in 2020, which surveyed 1,500 businesses worldwide, a whopping 44% found themselves smack-dab in the middle of a cash flow pickle that they totally didn’t see coming! Makes you realize just how crucial it is to keep a sharp eye on your cash flow, doesn’t it?

For those who might not know, PIOSEE stands for Problem, Information, Options, Solution, Execution, and Evaluation. It’s a tried-and-true method used in aviation decision-making, but it’s totally applicable to business too!

  • P stands for Problem. Calmly and quickly identify the most critical problem you are dealing with
  • I stands for Information. Gather information about the critical problem
  • O stands for Options. Based on the available information, brainstorm options and alternatives that could potentially solve the problem
  • S stands for Select. Evaluate the pros and cons of the available options, then select the option that you think is most likely to resolve the problem
  • E stands for Execute. Execute your selected option, including clarifying “who will do what by when?”
  • E stands for Evaluate. After executing, evaluate the results, improvements, and outcomes of your actions

Then, repeat the process as needed by going back to identify the next problem; it’s a troubleshooting loop.

An Example of PIOSEE in Action

Alright, now that we’ve got the basics of PIOSEE down, let’s put it into action. 

Your business is up in the air, and you’re the pilot at the helm, but you’re dealing with a critical cash flow crisis.   

It’s time to steer through two critical areas affecting your cash flow: the cash coming in and the cash going out. Both are like the wings of your business plane – you need to balance them for a smooth and successful flight.

So, ready to navigate through some financial clouds? Let’s dive right in and see how you can use PIOSEE to help steer your business to sunnier skies.

Addressing the Cash Coming In Conundrum: 

Using the PIOSEE framework, let’s first explore how to increase your cash coming in:

Problem: The cash coming in is trickling instead of flowing. You’ve got six weeks to turn that trickle into a river and get your cash flow looking healthy.

Information: Time to play detective. Get a handle on what’s bringing in money right now. What products or services are selling well? Are there any untapped opportunities or markets you could dive into? Who are your top customers, and what do they love?

Options: With that info, brainstorm some ways to increase incoming cash. Maybe you could:

  • Push marketing for your best-selling products or services – If it’s selling well, let’s sell more!
  • Offer a time-limited promotion or incentive – This could help pull in sales sooner rather than later.
  • Reach out to your best customers with a special deal – They already love your stuff, so give ’em more to love.
  • Launch a new product or service that meets a specific need – If you’ve spotted a gap in the market, now’s the time to fill it.

Solution: After checking out the options, pick your solution(s). For this example, let’s say you decide to ramp up marketing for your top product and offer a limited-time promotion.

Execution: Now it’s go time! Set up the marketing campaign, decide on the promo details, and make sure your team’s on board and ready to roll.

Evaluation: After six weeks, it’s check-in time. Did incoming cash increase? By how much? What worked, and what flopped? Use this info to learn and tweak your strategy for next time.
And there you have it, a six-week game plan to boost your incoming cash and improve your cash flow using the PIOSEE model.

Go get ’em, tiger!

Addressing the Cash Going Out Quandary:

Using the PIOSEE framework once again, let’s explore how to decrease your cash going out:

Problem: Your outgoing cash is running like a racehorse, and you need to rein it in within the next six weeks. More profit is the goal, and we must take steps to make that happen.

Information: Grab a magnifying glass and get your detective hat on! Time to investigate where your money is going. Are there any big expenses that stick out? Maybe your supply chain costs are too high, or you’re spending a lot on a service that isn’t giving you much return.

Options: Now, think of ways to reduce your expenses. Here are a few things you might consider:

  • Negotiate with suppliers for better rates – It doesn’t hurt to ask, right?
  • Review your staffing – Are there tasks that could be automated or outsourced for lower cost
  • Cut down unnecessary expenses – Do you really need that fancy coffee machine in the break room?
  • Consider alternative suppliers or products – Sometimes, a small change can lead to big savings.
  • Increase your marketing budget efficiency – Are there ways to reach your customers that won’t break the bank?

Solution: Based on your information and the options you’ve considered, choose your path forward. Let’s say you decide to negotiate with your suppliers for better rates and to cut down some unnecessary expenses.

Execution: Put your solution into action! Have those tough talks with your suppliers and make those cuts. It might be a bit hard, but keep your eye on the prize: more profitability.

Evaluation: After six weeks, it’s time to review. Did you manage to reduce your expenses? If so, by how much? Did this impact your profitability as you hoped? Use this evaluation phase to refine your approach for future cost-saving initiatives.

And there you go! That’s a quick guide on how to reduce outgoing cash and boost profitability in six weeks using the PIOSEE model. Remember, a penny saved is a penny earned!

Putting PIOSEE to Work: The Profit Stash App with Captain Stash, powered by ChatGPT, as Your Ultimate Co-Pilots

So there ya have it, my fellow business pilots. We’ve navigated through some tough turbulence together and got ourselves a sweet game plan to improve your cash flow in just six weeks. All using the power of PIOSEE. Pretty cool, huh?

But hold up, we’re not leaving you to navigate this alone. We’re working on an exciting addition to your crew. Captain Stash, our affable squirrel-astronaut is stepping up his game by integrating ChatGPT into the Profit Stash app!

Practically speaking, what does this mean?
It means that Captain Stash will appear to you as your AI-powered co-pilot in the Profit Stash app, providing “on-demand” practical insights and strategic recommendations tailored to your business.

The Profit Stash app, with Captain Stash doubling duty and serving as your wingman, helps you to:

  • Predict problems and issues before they happen
  • Detect problems and issues in the early stages
  • Brainstorm options and alternatives to your pesky business problems
  • Evaluate progress and outcomes
  • Making wiser decisions about those all-important course corrections

With Profit Stash and Captain Stash, outfitted with the intelligence of ChatGPT, you’re set to navigate the turbulent business skies with confidence.

Ready for takeoff? Schedule a demo and test flight of the latest version of Profit Stash today. 

Wishing you stronger cash flow and more profit in your pocket as you reach new heights of business success!

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