The Financial Gap with Mike Milan

In this episode of FinFactor, Blaine Bertsch and Mike Milan discuss the concept of “the financial gap” and its impact on businesses. They explore the challenges of managing inventory, the importance of optimizing inventory levels, the financial gap in service businesses and the need to maximize revenue by avoiding idle time. 

The conversation highlights the significance of understanding “the gap” and implementing effective systems and processes to address it. Mike discusses actionable steps that advisors can take to help businesses thrive and introduces the concept of the ‘Client Conversation Coach’, which focuses on improving communication with clients. He introduces the ‘fast money formula’ and emphasizes the importance of quick wins in moving the needle for businesses.

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Watch on youtube: https://youtu.be/wj7kPKmn7rk

Listen on your favourite podcast network or at https://finfactor.buzzsprout.com

Learn more about Mike and his training programs at https://cashflowmike.com/ 

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Summary

In this episode, Blaine Bertsch and Mike Milan discuss the concept of the financial gap and its impact on businesses. They explore the challenges of managing inventory and the importance of optimizing inventory levels. They also delve into the financial gap in service businesses and the need to maximize revenue by avoiding idle time. The conversation highlights the significance of understanding the problem and implementing effective systems and processes to address it. Additionally, they emphasize the importance of relationships in business success. In this episode, Mike Milan discusses actionable steps that advisors can take to help businesses thrive. He introduces the concept of the Client Conversation Coach, which focuses on improving financial conversations with clients.

Mike shares techniques inspired by the show Hoarders to create a disarming and powerful approach when discussing financial issues. He emphasizes the importance of asking questions and building self-awareness in order to guide clients towards taking action. Mike also explains the economic echo and how to translate the importance of financial decisions into dollars. He highlights the significance of effective and gentle communication, approaching clients as teammates, and mining the business for hidden cash. Mike introduces the fast money formula and emphasizes the importance of quick wins in moving the needle for businesses. He concludes by discussing his courses and books that provide practical tools and techniques for financial advisors.

Takeaways

The financial gap refers to the period when a company runs out of money while waiting for more funds to come in. Understanding and managing this gap is crucial for financial stability.

Inventory management is a key factor in reducing the financial gap. Businesses should aim to minimize excess inventory and optimize turnover rates.

Service businesses often leave money on the table by not maximizing their revenue potential. Efficient scheduling and capacity utilization can help address this issue.

Negotiating payment terms with clients can significantly impact cash flow. Shortening the time to collect payments can improve financial stability. Advisors should focus on actionable steps to help businesses thrive.

Improving financial conversations with clients is crucial for advisors.

Asking questions and building self-awareness are powerful tools for guiding clients

Translating the importance of financial decisions into dollars can create a greater impact.