Tips for making sure your business has enough cash.

“You need easy access to cash because the beer business is capital-intensive, especially when you’re growing and when times are tough,” says Adams, cofounder of Sebago Brewing Company, a leading brewpub and brewery in Maine. “And then you also need it just for your day-to-day operations.”

Every business needs liquidity that is, ready access to cash to pay bills and make payroll, and even growing businesses can experience cash crunches in that nail-biting gap between when expenses go out and revenues come in. Failure to manage your liquidity during that period can cause your business to take on too much debt or even go bankrupt.

You can improve your liquidity position (others call it working capital) through borrowing and by changing how you manage your assets and accounts. Here are three tips, which include additional insights from Adams on how he grew his business and then protected it during the pandemic by working with TD Bank.

  1. Recognize The Cash Value Of Assets.

Whether it’s surplus inventory, real estate or equipment, any asset that’s not helping to generate revenue is a burden on your business. Consider converting it to cash, which you can use for daily expenses or to reinvest into more profitable uses.

2. Regulate Your Cash Flow.

Improve your liquidity by syncing up your revenues and expenses and reducing account-related overhead. Get paid faster, avoid paying too early and increase the efficiency of your account management processes.

3. Borrow Cash To Grow Or Persevere.

Debt is a fact of life for businesses. Used carefully, debt can provide the liquidity companies need during both good times and bad. Loans can help whether your company is growing or dealing with unexpected challenges.


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