Beyond the Bottom Line

How to Put Your Idle Cash to Work

Miguel Alexander Centeno Season 1 Episode 4

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0:00 | 53:03

Most business owners have cash sitting in a checking account earning nothing. They assume treasury strategy is too complicated, too risky, or only worth it once the numbers get big enough. Meanwhile, inflation is quietly eroding their buying power every month.

In this episode, Miguel sits down with Mike Dombrowski of Rho to break down what treasury strategy actually is and how founders at any stage can start putting idle cash to work. Mike’s framing is simple - every dollar in your business is an invisible employee. If it’s sitting in a checking account earning nothing, it’s not showing up to work.

Other insights from this episode include:

  • Why treasury strategy used to require a full CFO function and a Wall Street relationship and how technology has changed that
  • Why being too conservative with your cash is itself a risk, and why Mike thinks of treasury as an insurance policy rather than an investment
  • The investment options worth knowing, including FDIC sweep products, treasury bills, and money market funds 
  • How the “reverse sweep” automates your cash flow so your operating account never runs dry without you watching it every day
  • Why certificates of deposit can look attractive but leave you unable to access your cash when you need it
  • How rising and falling interest rates should affect the duration of your investments, and why most small businesses shouldn’t be trying to game the rate environment
  • Stacking three strategies (treasury yield, 2% cash back on business spend, and R&D tax credits) and what the combined number can look like for a $2 million business

About Our Guest

Michael Dombrowski is the Corporate Treasury Advisor at Rho - a financial platform that gives businesses of all sizes access to treasury management, business banking, and automated cash flow tools.

Visit rho.co to learn more about Rho Treasury and the full platform.

Connect with Miguel on LinkedIn or reach out at media@centurionfirm.com