Working Capital 101

Most businesses overlook the importance of working capital management way too soon.

They just…

→ Monitor cash on hand periodically
→ Rely on quick ratio without full context
→ Assume they have enough liquidity until issues arise

But building 𝘰𝘱𝘵𝘪𝘮𝘢𝘭 𝘸𝘰𝘳𝘬𝘪𝘯𝘨 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 requires strategy.

Take it from me—understanding inventory turnover, payables, receivables, and working capital ratios was a game-changer for my clients.

When we started, it was all reactive.

Then we implemented structured receivables tracking.

Then we optimized payables periods.

Then we built solid inventory management.

Until one day, they achieved financial stability, backed by improved cash flow — real insights that allowed them to make proactive, data-backed decisions.

Here’s the best part about working capital management: you don’t need a full finance team to manage it effectively.

All you need is…
1. Current ratio analysis
2. Quick ratio monitoring
3. Consistent receivables tracking
4. Efficient payables management

Because it’s not about how much cash you have…

It’s 𝘩𝘰𝘸 you manage it (and what decisions you make with it).