Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners. These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.
In the 80s I owned a chain of retail ski stores. You might have thought that the seasonality of the cashflow would be brutal, but I never needed to use one penny of my line of credit, nor did I have any term debt. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Two reasons why I never needed my line of credit: first of all, I was shut in the off season, never tying up cash with unproductive, summer sporting goods inventory. And second I worked with suppliers so that the products I purchased and sold in January, February and March I didn’t have to pay for until October, helping me finance my summer. The moral of the story is do what you do best and negotiate with suppliers so you get what you need. You don’t get what you don’t ask for. And remember, the most successful business owners know their numbers!