1. A metaphor for a dairy cow that has calves annually, produces milk daily for life while requiring little maintenance. After the initial capital outlay has been paid off, the cow continues to produce milk and birth more cows that produce milk and more cows for many years. This is an example of an initial investment that grows geometrically over time. The Cash Cow Formula: 1 Cow + 1 Bull + 1 paddock + food + water = an exponential supply of cows and milk. Limited only by the supply of resources (paddock, food, and water.) 2. Products or services that have become market leaders, provide positive cash flow and a return on assets that exceeds the market growth rate. These products produce profits long after the initial investment has been repaid and help to fund company growth, leverage expansion and increase creditworthiness.
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