group celebrating EBITA and owner seeing he has no cash

Cash flow is not an afterthought. It is strategy.

When I walk into a business, the first thing I want to see is how money actually moves. Not just on paper, but in practice. That story always tells me more than the P&L.

At one company, we found that 40 percent of revenue was being collected in the last two months of the year. That meant the business was constantly strapped for cash even though it looked profitable on paper. The solution was to secure a new lending facility tied to receivables. That single move changed the entire trajectory of the business.

In another case, a company wanted to accelerate growth, but the real bottleneck was suppliers who were paid in 60 days while customers were taking 90 days to pay us. We shifted terms, built a rolling 13-week cash forecast, and suddenly the company had room to invest in growth without taking on additional debt.

I have learned that cash flow planning is not about being conservative. It is about being prepared. It gives you the ability to say yes when the right opportunity comes, or to survive when the unexpected happens.

Profit is theory. Cash flow is reality. And if you want to be strategic, you start with reality.

How often do you treat cash flow planning as strategy rather than just finance housekeeping?

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