Free Cash Flow Optimization
Updated: Jun 18
A recent small business national survey pulse reported over 75% of small businesses nationwide have less than 3 months of cash on hand available to run business operations. Cash flow is particularly important as a business grows and enters new markets. The business opportunity is likely to require extra funding to get started, and may not immediately generate profits.
It's important that business owners are generating enough cash to cover operating commitments as the business proposition develops. Imagine, a 30 day improvement for $50,000 worth of payables could free up over $4,000 in cash. Business owners are now being challenged even more to think creatively on how to cope with reduced cash flow. It's very common for people to leave financial matters and cash flow by the wayside, and often companies end up closing their doors because they leave cash flow in the background. Therefore, creative working capital solutions can be implemented to help improve business valuations as free cash flow is key.