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Working Capital Management – It’s All in the Timing
Manage episode 155407954 series 1155253
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Your business can be profitable but still hit the wall. Why? Because you run out of cash. That’s why you need to ensure you have a handle on your working capital. Andrew Birch, a director at Vantage Performance, says working capital management can provide the cheapest and easiest form of finance available to your business, but if you ignore it the consequences can be dire.
In this week’s Vantage Performance podcast Andrew talks to Phil Dobbie about businesses that have products which appear profitable, but the up-front cash requirements present an enormous amount of risk.
That’s why it’s vital that every business understands the importance of working capital management. Profitability is vital too, of course, but you’ll never grow effectively without an understanding of how and when your money is being used.
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