1. To take advantage of. 2. To use as or convert into capital. 3. To supply with capital or investment funds. 4. To authorize the issue of a certain amount of stock. 5. To convert debt into equity. 6. To calculate the current value of future cash flows. 7. To include expenditures in business accounts as assets instead of expenses.
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.
The ideas, explanations, and beliefs that are generally accepted as true by the general public or experts in the field. Though widely held, these ideas and pieces of advice are neither examined or validated. Many of these thought forms are no longer true (if they ever were), perpetuating them maintains the status quo.
1. The next person or entity in the business flow who receives the output of the preceding person or entity (supplier) in the form of a product, service or information. 2. A person one has to deal with. 3. Attracting customers is the primary goal of most businesses because it is the customer who creates demand for goods and services.