Situation: A Company is growing faster than its cash flow allows. This concerns the CEO because this growth involves promising technologies and products critical to the company’s future. What can the company do to improve current and new cash availability? How do you align cash flow with growth?

Advice from the CEOs:

• Every growing company has experienced this problem and solved it; so can this company.
• Grow more selectively. Review the available opportunities and select the most promising and profitable for focus. Restrict progress on less promising options for available time.
• Search the Internet for books and resources that on this topic. For example, try “101 Techniques to Manage Cash While you Grow”.
• There are experts, consultants and “Rent-a-CFOs” who specialize in this. Work with trusted contacts and/or search the Internet to identify appropriate resources who are familiar with the company’s industry and market.
• Explain the situation and challenge to your vendors. Ask for opportunities to extend payments and “borrow” from them.
• Explain the situation to customers and ask for better payments terms.
• Borrow from an aggressive bank, factor payables, and/or find additional lending sources that offer attractive payment terms.
• Be aware of and watch out for pitfalls that may cause serious problems. For example, an extended market contraction can leave the company stretched for cash.

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