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Episode 77: Ten Strategies for Managing Cash Flow in a Scaling Business

January 13, 2025

Episode 77: Ten Strategies for Managing Cash Flow in a Scaling Business

“If you have a business model that is profitable and you have identified, why am I in a cash flow problem? Do not go throwing good money at a bad problem because it’s only going to get worse and that hole is just going to keep getting deeper and deeper for you.”

– Andrea Jenson

Welcome to a brand new episode of the Cash Flow CFO Podcast. Join me for this presentation I gave on cash flow management for scaling businesses. We dive into ten actionable strategies that will help you anticipate and manage cash inflows and outflows effectively. From professional services to retail and coaching, I discuss challenges like late supplier payments, maxed-out credit lines, and missing growth opportunities due to cash shortages. If you’ve been feeling the squeeze, don’t worry—you’re not alone, and there are solutions!

Join us to learn the whole story!

“If you feel like you need to hire more team because you can’t deliver on what you’re selling, then that tells me you’ve got a pricing issue because you should have plenty of money if the sales are humming along.”

– Andrea Jenson

Looking Forward Not Backward

I highlight the importance of having a cash flow forecast to fill the void between your profit and bank balance. This tool helps you anticipate shortfalls by tracking all cash activities, including debt servicing and equity draws, and is essential for managing seasonality in your business. We also discuss ways to enhance cash inflows by invoicing promptly, improving collections, and offering incentives to encourage early payments.

Keep Your Cash

We explore strategies to slow down outflows, such as negotiating with vendors, prioritizing expenses, and conducting regular reviews of subscriptions and services. For businesses with inventory, adopting a just-in-time model can free up cash tied to unused stock. I also share how to boost profit margins by optimizing pricing, negotiating supplier rates, and finding efficiencies in delivering your products or services.

Bridge the Gap

We talk about personnel management during cash flow crunches, such as delaying hiring and optimizing existing team utilization. I touch on financing options, like lines of credit, but only when your business model is profitable and you’ve identified the root cause of cash flow issues. Remember, with the right tools and strategies, you can confidently navigate cash flow challenges and position your business for sustainable growth.

“…you either need to increase your prices or you need to find a cheaper way to deliver on what it is you’re selling.”

– Andrea Jenson

Want to get in touch with Andrea Jenson?

Website: https://thecashflowcfo.com