While lending is easing again, the lessons and reminders from a difficult borrowing environment these past few years should be remembered.
Savvy entrepreneurs realize that the most readily available and cheapest sources of capital are to be found inside their businesses…aka ‘bootstrapping’.
Finding, developing strategies for, and managing wisely the cash already in your business can carry you through difficult periods in your business driven by either constriction or growth.
In short, these strategies usually amount to the following:
- Actively managing the collection of cash owed to you by customers, rather than passively letting it come in;
- Minimizing the amount of inventory you carry;
- Carefully analyzing and controlling the payments you make to your vendors.
Each of these very general strategies has many options to consider, but some are more impacting than others.
The available information on the internet to help educate entrepreneurs on the strategies to manage their cash for growth is almost endless. Nevertheless, here is a link to a well written piece by Scott Bergquist of Silicon Valley Bank and posted on CFO.com.
Another source that holds a tremendous repository of articles to help guide entrepreneurs manage their cash is Inc.com.
David Chase has experience in small to medium private companies and large public companies as a senior operational and financial leader. With 14 years in finance, a CFO of multiple entities and divisional EVP experience, Dave has a breadth of experience. Dave has led or been instrumental in raising multiple rounds of equity and debt in excess of $450 million.