Do You Have a Cash Cow?
Many years ago, I worked for a large corporation. They had a division that increased business in a downturn and balanced the losses of other divisions. They had a “Cash Cow.” Over time, management evolved from guys who started as bag boys in stores to a team with little experience in the business but the right education. The economy was good, so the value of the Cash Cow wasn’t immediately evident. The Cash Cow was sacrificed to buy off a hostile takeover attempt. The corporation failed soon after.
A small business was struggling to keep up with orders for very expensive machines. Late payments held up orders for materials. A look around the shop floor included the discovery of a very small machine that a couple of fellows were finishing up. I asked about it. It was a partially manual machine that did the same work of the expensive machines on a small scale. It only took a couple hours to discover a market that had not been considered. There was interest. That machine took a couple days to assemble and minimal expense. Some parts of it were fabricated from scrap from the big machines. The market was good-sized and growing. The opportunity was there for a steady stream of revenue. It was a sustainability dream, a Cash Cow ready to go.
Do you have a Cash Cow? Is there something you might be overlooking that can make you nearly impervious to economic ups and downs? It could be the solution to your problems, a path to sustainability and increased profits.
