Apple to release OS X Lion a Cash game changer

Mac OS X 10.7 Lion release will set the cat among the pigeons ... but why should you be interested? For the first time Apple will release a new operating system only as a digital download available from it's online app store. Overnight this will dismantle the software reseller market and rebuild a direct sales channel to Apple’s customers. Obviously this will adversely affect companies that used to create and distribute the DVDs for the Operating System.  A grave impact could be felt by the business plan of PC World, best buy etc. as software manufacturers make the move to digital download only.

Putting to one side the technical difficulties in deploying a 4gigabit download, from design to delivery no physical touch is required, and the speed of product deployment is vastly improved as postage and packing becomes irrelevant.

More importantly the Cash implications are huge as the lead to Cash has just come down from weeks to minutes. Reseller bad debt has become extinct, and to top it all that Apple will be selling the software with an eye watering profit margin approaching close to 100%, once it recovers it’s development costs, which could happen within days of the release.

The release of OS X Lion is a Cash game changer it should make you stop and think about the way you handle Cash in your Business.  Remember, it's all about Finding Cash in Your Business, handling it well and looking for the golden opportunities it creates.

Wimbledon Centre Court Nadal V Murray in the Cash growth Semi Final

Let's look at the financial prize stats to date and see if we can serve up any conclusions on the outcome of the match (Wimbledon 2011) Andy Murray has played 391 Career tennis matches of those he has won 289 and lost 102 and in the process has earned himself $16million USD that works out at an average of $41,000 for each game played. Rafael Nadal has played 625 Career tennis matches of those he has won 517 and lost 108 and in the process has earned himself $42million USD that works out at an average of $67,000 for each game played.

So it looks like it's all over for the Scot until you challenge recent baseline performance with hawk eye. Year to date Murray has played 30 career tennis matches of those he has won 22 and lost 8 and in the process has earned himself $2million USD that works out at an average of $67,000 for each game played.  Year to date Nadal has played 52 career tennis matches of those he has won 45 and lost 7 and in the process has earned himself $4.3 million USD that works out at an average of $83,000 for each game played. So Nadal PLC is expected to win until you look at the prize earnings growth.

The earnings growth for Murray PLC has increased by $26,000 over the average baseline figure of $41,000 as compared to Nadal's increase of $16,000 over his average baseline serve of $67,000.  So there you have it invest in Nadal PLC for a powerful serve and a nice stable return or Murray PLC for a vastly improved baseline serve, a speedy return and a potential future winner. 

Finally, use your head. Nothing in this post is intended to replace common sense, and as you can imagine Cash prize money is only a part of a Players income. But the question remains how do others perceive your companies growth potential? Remember, it's all about Finding Cash in Your Business, handling it well and looking for the golden opportunities it creates. 

The Greek Tragedy

The Greek government employs 1/3 of the population. It has the highest budget deficit in the EU. In monetary terms it spends approx. $45Billion per annum more than it raises in taxes, and it's debt mountain stands at about $544 billion.  A new loan package of a further circa 120 billion euro over three years is currently being considered by the IMF. So not surprisingly any additional loans come with very strong caveats. On 13 June 2011, Standard and Poors lowered the Greek sovereign debt credit rating to "CCC', which means: vulnerable, dependent on current economic situation!


If the outstanding debt is restructured delaying repayment further the credit agencies will rate the Greek government bonds as Junk, which means that the lenders are not expected to get anything like the face value back.  It's all very well getting a loan but the debt problem has not gone away, the deficit has not gone away and in fact the problem has now been compounded with high interest payments.  


The next few weeks will be critical to the future of the eurozone.  Here are some potential consequences of the a Greek sovereign debt default.  The so called PIIGS (Portugal, Ireland, Italy, Greece, Spain) will struggle to raise any additional funding at favourable rates. A number of banks including the bank of Cypress could go bust, "flag of convenience" shipping and holidaying in Greece could become much cheaper. 


But here is the billion dollar question "why are the eurozone heavy weights like Germany and France not throwing themselves behind more loans to Greece at more favourable rates?"  Could it be that the eurozone has reached the tipping point, and it is now better for the eurozone if Greece just slipped away?  Ask yourself the question how long could you run a business in deficit?  The key to surviving the global credit crunch is to look for cash in your Business, find it, handle it well and look for the golden opportunities it creates.  Finding Cash in Your Business

Marathon Running and the cash comparison

A friend of mine, Keith Cluderay, is a Marathon winner and Olympic trainer. He told me an interesting story last week. At some point when you are running a Marathon you run out of energy, your body just can't store enough fuel. I kid you not the running terminology is "bonking", some people call it the wall. Your body's fuel store has been completely depleted, and your body needs to break down fat into energy to keep running. Interestingly just before you bonk you are running at your best, I guess you are like a car coasting. As suddenly as a click of the fingers your speed drops and you feel terrible.

Back to our story. Keith was 2 miles off finishing the Marathon and looking like coming in second when the front runner suddenly slowed down and just as Keith became level with him, he said in a low strained voice "go on Keith win the race!" Even after 24 gruelling miles and almost spent that small encouragement played a huge part in providing just the boost he needed ... and Keith won the race.

The analogy with Cash is startling you may have covered most of your route to Market but are you running low on funds? What Cash boost do you need to come over the line?

Introduction to the Finding Cash in your Business Podcast Series

The podcast that helps you find Cash in your Business: On this episode we are going to provide a guide of what you can expect to learn by listening to the podcast. An explanation of the term credit crunch. A story to get you thinking about the value of money in your business. The Cash in quick tip. Seven areas where you’ll find cash buried in your business and the seven building blocks where the money is hidden. And a special offer for our listeners.