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How Small Businesses Can Make the Most of Their Cash Reserves with Phillip Ramsey and Bryan Dewhurst

Episode 74:

Business is all about managing risk and finding opportunity. Finding that opportunity can mean that your business has excess cash on hand, more than is needed for daily operating expenses.

It seems like a great problem to have: business is going well and you have built up solid cash reserves. The idea is to maintain liquidity, but also generate some yield on that money. It’s great that it is there, but you also want to put it to work for your business in a way that is accessible and avoids unnecessary risk.

You don’t want to take your eye off the main focus of your business, but you’ve got to manage the assets your business has built up. The big question:

How?

For multi-national corporations, they have an entire department devoted to this cash on hand. This unique role is called Corporate Treasury. But what can smaller businesses do to manage their treasury, without an army of accountants and number-crunchers on the payroll?

We want to show you the variety of ways you can leverage your cash on hand, and share with you how a smaller company can manage treasury without staffing up.

What You Will Learn in This Episode:

  • What Corporate Treasury is
  • How your business can most effectively leverage cash on hand
  • The right way to manage savings and debt reduction for business
  • Understanding the Uncommon Debt Ratio
  • Why it’s so important to “know your numbers”
  • How to use whole life insurance as a resource in business
  • How you can use cryptocurrency as part of your corporate treasury strategy
  • Why it’s easier and more cost-effective than ever to outsource your CFO role
“Many small business owners don't have someone in their company focused on optimizing all of their assets, their cash, 401k, house, real estate, etc. How does all that fit together to build wealth?” – Bryan Dewhurst Click To Tweet “The reason we got into business: we never felt like there was somebody there to help the individual or business owner really put all their assets to use and make them super-efficient.” – Phillip Ramsey Click To Tweet “I believe the tax code has changed so you can no longer deduct financial planning fees on the personal side. But you can as a business.” Bryan Dewhurst Click To Tweet “For a business putting excess cash into a brokerage account, we advocate a lower risk portfolio that isn't going to fluctuate wildly in value.” – Phillip Ramsey Click To Tweet “We're always trying to maintain liquidity and control for our business owner clients because cash is king.” – Bryan Dewhurst Click To Tweet “There are many ways to make commercial real estate a part of your corporate treasury strategy, from paying yourself rent, to leasing parts of your building to other businesses.” – Phillip Ramsey Click To Tweet “As a business owner, once you get cash flow worked out, you can build wealth in so many different ways. It gets really exciting.” – Bryan Dewhurst Click To Tweet “Corporate real estate can also be part of your exit strategy. You can sell the business and still own the building and continue to collect rent.” – Phillip Ramsey Click To Tweet