Financial Solutions
For all companies, but especially start-ups and small businesses managing cash flow is one of the highest priorities. In February 2020, we started working with a new client that had one month of runway.
Success by the numbers
$79K
Beginning cash Feb 1, 2020
$500K
Ending cash Sep 30, 2020
532%
Increase in ending cash balance
Immediately, after starting the engagement we put in place the following processes:
Weekly cash flow forecasting
Accounts payable and receivable management
Detailed operational budget
Hiring plan
Investment plan
We were able to improve the cash balance of the company from $79k in February 2020 to $500k by end of 2020 while the company experienced a 49% reduction in revenue due to COVID-19.
In the last 9 months of 2020 the company also improved it’s gross profit margin from 46% to 62% and net income margin from -42% to practically breakeven, -1%, compared to the first 3 months of 2020 before we started working with the client.
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