Cash flow issues have been a continuous challenge for businesses. The quote below is just as relevant today as it was in 2009.
“Cash flow problems are common in business, and people often have a hard time figuring out what’s behind them. But there are actually just a few potential causes: You could have too much cash tied up in receivables or – if you have a product-based business – in inventory. Or you could have too many deadbeat customers. Or you could be spending too much on overhead. But if receivables, inventory, bad debts and overhead are all under control, there is only one other likely culprit: Weak gross margins, which could mean prices are too low, direct costs are too high, or some combination – sometimes tough to swallow.”
Many business owners started their business because they had a passion for the product, customers and manufacturing processes. They did not get into business to manage the financial side. B2B CFO® partners have a passion for the financial side and therefore make a great match for business owners. Our partners have years of experience in a vast array of business environments and markets, managing the financial side.
A conversation with a B2B CFO® partner might help you improve cash flow. Joe Faisant and I cover the Southwestern Ohio market and learned many of our cash flow management skills working for firms with private equity investors or lenders. We can apply those same skills to local smaller businesses and help them improve their cash flow while putting them on a stronger footing with their bankers.
 Inc Magazine, May 2009 by Norm Brodsky.