Title: How the 'DSO, DIO, DPO Calculator' Saved the Thompsons' Failing Family Business,... Tagline: How the 'DSO, DIO, DPO Calculator' Saved the Thompsons' Failing Family Business, Freeing Up $75,000 in Cash Flow Problem: The Thompson family's landscaping business, "Thompson's Green Thumb," was facing a severe cash crunch. Despite strong revenue, their bank account was perpetually depleted, forcing them to delay equipment maintenance and even consider reducing staff. They were unsure why they had so little cash relative to sales, putting their ability to fund their children's upcoming college expenses at risk. Solution: By using the Golden Door Asset DSO, DIO, DPO Calculator, the Thompsons identified critical bottlenecks. Their Days Sales Outstanding (DSO) was excessively high at 65 days, indicating slow invoice collection. Days Inventory Outstanding (DIO) was also high at 80 days due to overstocking certain seasonal plants. Finally, their Days Payable Outstanding (DPO) was a mere 30 days, meaning they were paying suppliers quickly without maximizing their payment terms. Using this information, the Thompsons implemented a proactive invoice follow-up system, negotiated longer payment terms with their suppliers, and refined their inventory management processes to avoid excess stock. ROI: By reducing their DSO to 45 days, the Thompsons freed up approximately $40,000 in cash flow. Optimizing their inventory to lower DIO to 60 days released an additional $35,000. Negotiating extended payment terms to increase their DPO resulted in another $5,000 benefit by increasing their free cash by 10%. In total, the Thompsons unlocked $75,000 in previously tied-up capital, ensuring sufficient funds for equipment upgrades and comfortably funding their children's college education. Description: Struggling with cash flow? Discover how a clear understanding of your Days Sales Outstanding, Days Inventory Outstanding, and Days Payables Outstanding can revitalize your business and secure your family's future. This case study shows how the Thompsons used our DSO, DIO, DPO Calculator to identify inefficiencies and unlock significant working capital. Category: Lead Gen