Sales Were Up 40%: Here's Why They Still Didn't Have Enough Cash
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Revenue is up 40%. Online ads are working! But cash is tighter than ever. Should they raise their prices?
If you’ve ever stared at growing sales numbers while your bank account tells a completely different story, this episode is for you. Sarah is walking you through a real client case study - a brand with 70% gross profit margins and 40% revenue growth that was still cash strapped - and breaks down exactly how she identified the true source of their cash flow problem. Spoiler: it wasn’t their prices.
Here’s what this episode covers:
* Why raising your prices when you’re cash strapped can actually make things worse, and how to know when it is the right move
* The shift from “should we raise our prices?” to “why don’t we have enough cash?” and why asking the right question changes everything
* The two-step framework Sarah uses to pinpoint exactly where a cash flow problem is coming from
* The inventory strategy this brand used to free up tens of thousands of dollars without touching their prices or their product
Ready to do this work in your own business? The Good Food CFO software walks you through exactly this process — investigate your margins, run your financial audit, and dig into your inventory — so you can find the true source of your cash flow problem. Learn more at https://thegoodfoodcfo.com/software Every subscription includes free access to weekly office hours with Sarah.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thegoodfoodcfo.substack.com