If anything highlights the importance of maximizing cash flow and reducing the cost of leverage, it is the surge in interest rates: from 3.75% in December 2021 to 7.5% at the close of 2022. As we embark on this new year, all small and medium-sized businesses (SMBs) need to set targets for improvement – the …
Business owners face many challenges today – cash flow being one of the most challenging. Attracting and retaining top talent, marketing strategy and establishing a strong brand, business growth, time management and delegation, and communication are also on owners’ minds. But from a financial perspective, cash flow is often the biggest problem owners face today. …
I did a cash flow exercise the other day with a new client, and they were blown away by the simplicity of some cash flow enhancement techniques. The company was a $6,000,000 manufacturer with approximately $600,000 in accounts receivable, $1,000,000 in inventory, and $300,000 in accounts payable. We calculated simple annual cash flow velocity (amount …
CEOs and business owners are under a tremendous amount of stress these days. Even if the business is profitable and has decent cash flow, leaders face uncertainties such as supply chain issues, inflation, difficulty finding staff, the potential of rising interest rates, the pressure of the board of directors to perform better and corporate taxes. …
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I work with many bankers and lawyers who call me when they have a customer or client whose company balance sheet shows they need help improving their business. The initial assessment takes about a week. We review the companies’ internal controls and backroom systems. Then we look at the historical financial statements, the current forecast, …
What a year! We said that at the end of 2020 and as a business owner or executive, you’ve had your second-challenging-year-in-a-row. Finding good staff, dealing with supply chain delays, PPP loans, etc. Things have continued to change; I hope you’ve been able to adapt your business to thrive. Pandemic or not, it’s the time …
I have written a collection of posts for many years on topics related to cash flow, healthy and fitness, personal development, strategy, productivity, processes, and profit. I believe that we can succeed in business and life by continually growing and learning. Click on any of the categories to find my posts on that theme.