How Growing Companies Can Fail: Understanding the Cash Flow Gap (Ep. 1: Business Analytics Series)
Numerical Insights is releasing a series of posts and videos illustrating Key Performance Indicators (KPIs) for business analysis and how to use data analytics to improve the bottom line. If you're a business owner or responsible for key business functions such as procurement, inventory management, or product profitability, sign up here to follow the entire series.
Smaller, younger businesses are more likely to fail because of cash flow problems and poor cash flow management. In fact, the SBA reports that 82% of younger businesses fail this way. Understanding the concepts of order-to-pay and the cash flow gap are key to successful business management. View this video for an easy explanation of how growing businesses can fail if they don't manage this challenge and how to use simple data analytics to how this challenge can impact you.
Concepts covered in this episode:
Cash flow gap
Accounts receivable over time
Cash tied up in inventory
About Tracey Smith
Tracey Smith is the President of Numerical Insights LLC, a boutique analytics firm that helps businesses derive value from data and improve their bottom line. If you would like to learn more about how Numerical Insights LLC, please visitwww.numericalinsights.com or contact Tracey Smith through LinkedIn. To read future posts, you can join Ms. Smith’s network by signing up here, or follow her on Twitter or Facebook. Browse more articles from Ms. Smith on her Numerical Insights blog.