How do you align cash flow with growth?
A company is growing faster than its cash flow allows. This concerns the CEO because this growth involves promising technologies and products critical to the company’s future. What can the company do to improve current and new cash availability? How do you align cash flow with growth?
Advice from the CEOs:
Every growing company has experienced this problem and solved it; so can this company.
Grow more selectively. Review the available opportunities and select the most promising and profitable for focus. Restrict progress on less promising options for available time.
Search the Internet for books and resources that on this topic. For example, try “101 Techniques to Manage Cash While you Grow”.
There are experts, consultants and “Rent-a-CFOs” who specialize in this. Work with contacts and search the Internet to identify resources who are familiar with the company’s industry and market.
Be aware of and watch out for pitfalls that may cause serious problems. For example, an extended market contraction can leave the company stretched for cash.
May your business prosper. More detail on this topic at https://ceo2ceos.com/2023/07/how-do-you-align-cash-flow-with-growth-eight-points
B2B Industrial Marketing Writer
1 年The problem might be or might have become "under-capitalization" because of fast growth. Solutions to consider: -Pay a little slower than you collect -Get prepayment of orders in exchange for a lower price -Take on a Partner who can provide cash and help run the company -Go to a Venture Capitalist -Get a Government loan guaranty for a bank loan Cheers, Paul