Cash Is Oxygen: How to Strengthen Your Business with the Cash Conversion Cycle & Four Forces of Cash Flow

Every business owner knows the feeling: revenue is strong, customers are happy—yet the bank account still feels tight.
That’s the paradox of growth. As Verne Harnish says, “Growth sucks cash.”

Cash is to business what oxygen is to the body. When it runs short, nothing else matters.

Let’s explore two Scaling Up Growth Tools that help businesses strengthen their financial lungs: the Cash Conversion Cycle (CCC) and Greg Crabtree’s Four Forces of Cash Flow.

The Cash Conversion Cycle: How Fast Do You Get Your Dollar Back?

Your Cash Conversion Cycle measures the time between when you spend a dollar and when that dollar returns to your account.

Michael Dell learned this lesson the hard way. Early in Dell’s growth, the CCC was 63 days—meaning it took more than two months to turn spending into cash. After focusing relentlessly on shortening the cycle, Dell brought it down to –45 days.

That meant the faster they grew, the more cash they generated.

The CCC has four levers to pull:

1. Sales – How quickly do prospects become paying customers?
2. Production & Inventory – Are you tying up cash in stock?
3. Delivery – How long before customers receive what they buy?
4. Billing & Payment – How quickly do you invoice and collect?

Improving even one of these levers can dramatically boost your cash flow—and give you breathing space to focus on strategy and growth.

The Four Forces of Cash Flow: A Framework for Financial Strength

Gazelles coach and author Greg Crabtree developed the Four Forces of Cash Flow after studying hundreds of businesses. Together, they form a practical roadmap for building financial stability and long-term wealth.

1. Tax Provision

Set aside cash each quarter to cover tax liabilities.
Avoid the trap of manipulating numbers to “save on tax.” The goal isn’t minimizing tax—it’s creating a true picture of financial health.

2. Debt Management

Eliminate short-term debt each quarter and stay current on long-term loans.
Apply the Pareto Principle—focus resources on the 20% of products, customers, or channels that generate 80% of your profit.

Use Waterfall Graphs to visualize where profit truly comes from.

3. Core Capital Target

Once taxes and debt are handled, build a cash buffer equal to two months of operating expenses.
This buffer acts as shock absorption—protecting your business from surprises while preserving your capacity to invest in growth.

4. Dividend Profits

When the first three forces are in place, harvest the rewards:
Pay dividends to shareholders and share profits with the team that helped create them.

That’s how financial discipline becomes a flywheel for growth.

The Takeaway

Cash discipline isn’t just about survival—it’s about freedom.
When your company consistently generates internal cash, you gain control over your destiny.

If you’d like to explore how to improve your Cash Conversion Cycle or apply the Four Forces of Cash Flow. Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.