Welcome back to Business Unfiltered with Mercer and Jeff Sauer today's topic is Leveraging Cash 0:00: Leveraging cash to improve business operations. Leveraging cash to make the business run more smoothly by investing in systems, advertising, and employee retention. 1:50: Managing cash flow in business. Mercer and Jeff discuss how to manage cash flow in a business, with Mercer emphasizing the importance of keeping cash for a rainy day and Jeff highlighting the benefits of hiring ahead of the game. Jeff suggests that people often view cash as an expense rather than an investment, and Mercer agrees, noting that investing in business growth can lead to long-term returns. Jeff and Mercer both emphasize the importance of having buckets of cash to smooth out fluctuations in business income and expenses. 4:52: Managing cash flow, team, and payroll structure for business growth. Mercer prioritizes maintaining a 3-month reserve account to handle unexpected expenses and payroll, reducing stress and allowing for clearer decision-making. He has made investment mistakes in the past, such as overestimating the potential of a new role or component, and advises cutting losses early to avoid further losses. Mercer discusses the importance of payroll structure and how it can impact team performance. He suggests redistributing payroll to incentivize better performance and achieve growth. 8:57: Saving money by prepaying annual expenses. Mercer discusses how he saves money by prepaying annual expenses, such as vendor invoices, to avoid finance charges. Mercer shares his strategy for negotiating discounts with vendors, including asking for a year-long payment plan in exchange for a lower price. 11:24: Leveraging cash reserves for business growth. Jeff and Mercer discuss the benefits of overfunding a reserve account, including reducing future expenses and giving founders more stability and leverage in their business. Distributing money to oneself from a profitable business can provide comfort and allow founders to make long-term decisions without worrying about financial instability. Jeff discusses leveraging cash flow by distributing it to oneself, such as buying a house or investing in high-risk investments like Bitcoin. He also mentions investing profits from their holding company into their travel blog to grow its future potential. 15:58: Investing in AI and automation for business efficiency. Mercer discusses investing in tools to improve efficiency and forecasting, mentioning AI training programs and Chat GPT as examples. He highlights the importance of tax planning, citing the benefits of having a CPA and bookkeeper on board. 18:35: Common mistakes in leveraging cash reserves to improve business operations. Mercer shared a mistake he made with leveraging cast to make his business run more smoothly: expanding too fast and bringing in people without a strategy. He also mentions mistakes with leveraging employees, including not setting realistic expectations and not investing in training. Jeff advises against hiring someone with a "mythical unicorn skill set" just to fill a role, as it can lead to misery and failure. He also cautions against filling out an org chart too quickly, as it can be expensive and disruptive to a small business. Jeff suggests that organically adding one position at a time is a better approach than replacing multiple roles at once. 24:22: The value of mastermind groups for entrepreneurs. Mercer joined a mastermind group to get out of his head and learn new tactics but found that it also became a profit center for his business. Jeff struggled with acting on the advice given in mastermind groups but found them valuable nonetheless. Both speakers emphasized the importance of finding the right mastermind group that aligns with your business goals and provides valuable insights. 27:33: Leveraging cash flow for business growth. Jeff discusses the importance of investing in oneself and one's business through books, masterminds, and hiring experts. Mercer agrees and shares his experience of hiring others for their expertise in mastermind groups. He advises us to think through how to use money best, considering both short-term needs and long-term goals.