Today we look at 12 ways to manage working capital. These methods can be used internally by managers looking to improve their productivity or unit performance. Externally, B2B sales people can look for ways their products or services can produce these advantages for their customers. The key is to review the lists and find one that makes sense for you. Then take that one method – launch and measure your results.
Working Capital is one of the key factors in financial management and is one of the things that managers and sales people need to understand. The dozen methods I’m sharing with you today represent both basic and high level methods or decisions to be made for a company to improve their working capital position.
Remember that Working Capital is about cash and near cash that is available for the company to use during their normal operations. Think about the net cash available to use over the cash needed for basic operations and capital investments.
So here are the 12 ways to manage working capital: