Brooke Lively, an Entrepreneurs’ Organization (EO) member in Fort Worth, is founder and president of Cathedral Capital, which provides strategic financial advice to drive profit by creating customized teams of financial professionals to analyze data trends and guide entrepreneurs through their numbers so they can predictably scale and grow their businesses. We asked Brooke what options entrepreneurs have when facing a cash crunch. Here’s what she shared.
Over the years, in helping companies pivot toward profitability, we have helped solve hundreds of cash crunches in various industries. I’ve learned that the biggest determinant of success was the amount of time we had until the cash crunch hit. The more time we had to solve the problem, the better able we were to avoid an upcoming situation.
While there are three main levers you can pull to impact cash flow, the most essential element to implement is a forward-looking Cash Flow Forecast that functions as an early warning system.
This article was written by Entrepreneurs’ Organization and originally published on www.inc.com