Six Cash Flow Drivers Every Owner Should Know
Episode Overview
In this episode, Stephanie is joined by Kris Smith to discuss six key drivers that directly impact cash flow in your business. Learn how to improve your financial health without needing more sales.
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Show Notes
Stephanie Smith, host of Getting to the Bottom Line, welcomes Kris Smith to explore six foundational cash flow drivers. This episode offers real-world financial advice for entrepreneurs who want to improve their cash position without selling more.
What You’ll Learn in This Episode:
What Days Sales Outstanding (DSO) means and how to shorten it
How inventory ties up your cash—and how to fix it
When to sell or avoid buying large assets
How to strategically manage vendor payments
Smart ways to handle debt for better cash flow
When and how to pay yourself as an owner
Key Takeaways:
Faster payments mean more usable cash
Unsold inventory is money on a shelf
You can free up cash by selling unused assets
Delaying vendor payments (strategically) can support cash reserves
Aligning debt payments with revenue improves stability
Owner draws and distributions should be aligned with business cash flow
Resources Mentioned:
Profit First cash management strategy
Advice to consult your CPA for asset classification
Stephanie’s newsletter: https://newlightfs.com/newsletter/
Final Thoughts
Improving cash flow doesn’t always mean increasing revenue. By managing how and when money moves in and out of your business, you can strengthen your financial foundation and reduce stress.
