Working Capital

Mastering working capital is a competitive advantage. This section dives into strategies for optimizing inventory, receivables, payables, and capital allocation to keep your business agile and well-funded. Whether you’re preparing for expansion or improving operational efficiency, you’ll find practical insights here.

What is Working Capital?

Working capital is the capital you use for day-to-day operations. We’ll break down what working capital is, how to calculate it, and why managing it well is critical for financial health and flexibility.

Managing Inventory & Receivables

Optimizing inventory and receivables helps free up cash and reduce risk. In this section, you’ll learn techniques for lean inventory management, faster collections, and minimizing bad debt — all of which improve liquidity.

Payables Management Best Practices

Managing payables strategically gives you more control over cash outflows. We’ll cover negotiating favorable payment terms, building strong supplier relationships, and managing payment timing to optimize cash flow.

Optimizing the Cash Conversion Cycle

Your cash conversion cycle is a key driver of working capital efficiency. Learn how to analyze and optimize this cycle so you can operate more efficiently and reduce the need for external financing.

Funding Growth Through Working Capital

As your business grows, working capital needs evolve. We’ll explore how to fund growth responsibly, balance reinvestment with risk management, and avoid the common mistakes that derail scaling efforts.

Articles related to Working Capital:

Working Capital 101: The Small Business Owner’s Guide
Working Capital 201: Profit vs. Cash Flow Drivers
Working Capital 301: Optimization Strategies
Working Capital 401: Cash Conversion Cycle (CCC)
A Small Business Capital Allocation Guide
Capital Allocation Part II: Cash Sources and Uses
Capital Allocation Part III: Return on Capital