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Cash Flow Management Techniques in Action

I saw this article on Entrepreneur.com. As a strong advocate of diligently managing business cash flow, and a believer that you can solve most issues if you identify them and confront them…and think creatively, I liked this article because it’s about a small business owner who did just that. She encountered problems but then put some cash flow management techniques into play. The article is about a tiny business but the concepts apply to much larger businesses. – T. C. Wright

How a Microbusiness Rebounded from the Recession

A fashion startup survives cash-flow problems and redesigns itself for a comeback.

Warning signs were few for Rose Corrick. In summer 2008, sales at her women’s apparel company, Art of Cloth, hit their highest levels ever as more boutiques added her hand-dyed textile fashions. Preparing for big growth, she even signed a lease in October 2008 to move the company’s operations from her basement to a 4,500-square-foot warehouse. Little did she realize the timing could not have been worse.

oon after signing a three-year lease on the new space, the U.S. economy began its nosedive and cash-flow problems followed. About 15 upscale clothing boutiques – scared by the headlines and struggling themselves – canceled their orders in October and November 2008. Art of Cloth had already custom-made the clothes, so the cancelations resulted in about $30,000 in lost revenue. While stores technically weren’t allowed to cancel, the company had little legal recourse and didn’t want to upset its loyal customers.

Finish reading the article on Entrepreneur.com.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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