{"id":1711,"date":"2013-05-23T10:00:22","date_gmt":"2013-05-23T17:00:22","guid":{"rendered":"https:\/\/berkonomics.com\/?p=1711"},"modified":"2013-05-22T11:38:07","modified_gmt":"2013-05-22T18:38:07","slug":"cash-is-time-is-cash","status":"publish","type":"post","link":"https:\/\/berkonomics.com\/?p=1711","title":{"rendered":"Cash &#8211; is time &#8211; is cash."},"content":{"rendered":"<p>Here is a simple economic truth.\u00a0 Fixed overhead continues to eat into your cash month after month.\u00a0 It doesn\u2019t differentiate facile, efficient businesses from slow, disorganized, quality-challenged ones.<\/p>\n<p>If it takes eighteen months to get a new product out the door and into the market, and if a product\u2019s gross margin is ten dollars but the corporate overhead is a million a month, it will take the sale of 67,000 more units to break even than if it were to take only six months to market.\u00a0 If the total annual potential is 100,000 units, the slower cycle to market just cost the company two thirds of a year in the product\u2019s profits.\u00a0 With today\u2019s rapid obsolescence, that could be the entire life cycle of the product itself, lost because of being slow to market.<\/p>\n<p><a href=\"https:\/\/berkonomics.com\/wp-content\/uploads\/2011\/09\/Protecting.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-914\" alt=\"Protecting\" src=\"https:\/\/berkonomics.com\/wp-content\/uploads\/2011\/09\/Protecting-206x300.jpg\" width=\"206\" height=\"300\" srcset=\"https:\/\/berkonomics.com\/wp-content\/uploads\/2011\/09\/Protecting-206x300.jpg 206w, https:\/\/berkonomics.com\/wp-content\/uploads\/2011\/09\/Protecting.jpg 426w\" sizes=\"auto, (max-width: 206px) 100vw, 206px\" \/><\/a>And profits from the sale of the product create cash for development of the next product.\u00a0 If the time to market is slowed by inefficient development, the risk of a competitive product overtaking yours increases dramatically.<\/p>\n<p><span style=\"color: #993300;\"><em>[Email readers, continue here&#8230;]<\/em><\/span>\u00a0 So the truth of the statement is self-evident. Because fixed overhead burns cash, extended development cycles burn more cash, preventing earlier sale of product, to create even more cash. \u00a0Efficiency in development pays off in less cost and earlier competitive products, often producing greater market share in the process.<\/p>\n<p>Have you considered how to make your operation more efficient as an important way to increase cash flow?\u00a0 Most of us are quick to worry over cutting costs.\u00a0 Some of us worry over how to greatly increase revenues.\u00a0 Few of us worry over how to squeeze more efficiency out of the development cycle or from the organization itself.<\/p>\n<p>That\u2019s your challenge for the day, week, and month.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is a simple economic truth.\u00a0 Fixed overhead continues to eat into your cash month after month.\u00a0 It doesn\u2019t differentiate facile, efficient businesses from slow, disorganized, quality-challenged ones. If it takes eighteen months to get a new product out the &hellip; <a href=\"https:\/\/berkonomics.com\/?p=1711\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-1711","post","type-post","status-publish","format-standard","hentry","category-protecting-the-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts\/1711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1711"}],"version-history":[{"count":0,"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts\/1711\/revisions"}],"wp:attachment":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}