How One Company Found $1 Million Hiding in Plain Sight!

 

By Rich Bond

You want to expand your business, but you don’t think you have enough working capital.

That can be a faulty assumption.

If you want to increase your working capital without borrowing in these times of increasing interest rates, you can:

  1. Reduce Accounts Receivable – get customers to pay more quickly.
  2. Increase Accounts Payable – pay your suppliers more slowly.
  3. Increase inventory turnover.

All three of these objectives can be measured and monitored. Once they are, the results can be astonishing.

Take this $30 million manufacturing company.

The owner hired me to recruit a new Controller. One of the first things the Controller did was to study the firm’s inventories in detail and share his findings. Within a year, he was able to reduce inventories by $1 million, while improving the on-time ship-rate from 85% to over 90%.  Customers were happier, and the company suddenly had an extra $1 million in free cash that they used to grow sales to $50 million!

Contact me if you would like to talk about hiring a financial professional who can potentially help transform your business.

 

 

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