Cash Demands on a Growing Business

You have to spend money to make money!

Most business owners want to grow their revenue. To get there, you better bring cash. Why?

More inventory needs to be bought or produced first. More staff likely needs to be hired, which is an ongoing higher expense.

After the growth happens, you will have more customer invoices to collect if you sell on credit. You’ll also have more vendor bills to pay, and perhaps more loan payments to make.

Growth takes hard work and discipline not just in operations, but in your finance function, too. How do you make it happen?

Tighter credit terms for customers. Negotiate later payments with vendors. Optimize inventory replenishment to match demand and reduce how much cash is frozen on the shelves.