Nate Littlewood, fractional CFO and mentor, is on today's episode to shed some light on the 3 most common financial challenges that affects most e-commerce entrepreneurs and talks about how to fix them. He talks about the ways you can optimize inventory, cash flow, and reduce overhead costs.
Get mystery shopped for your brand and 2 competitors of your choice FOR FREE! Stord will provide a detailed report that outlines the specific areas you are out performing your competitors and where your competitors are outperforming you. Learn how your consumers truly experience your brand today!
Cash flow is king when it comes to e-commerce businesses.
More often than not business owners need to use debt to order more inventory, while keeping the price the same.
Does that really make sense if all your profit ends up going to your SBA loan leaving you with nothing?
It doesn't.
That's why in today's episode we have Nate Littlewood on the podcast. He's a fractional CFO with a background in finance, and he helps e-commerce entrepreneurs figure out how they can improve their finance literacy. He's on the podcast today to talk about the 3 ways e-commerce businesses can improve their profit margins so they can start feeling their bank accounts grow.
The Big Takeaways
- Many entrepreneurs have most of their cash flow tied up in inventory, making business cash flow a huge struggle.
- Fixing inventory can be an easy way to gain back some cash flow which makes your business more nimble and adaptable.
- Every now and then, you should assume that your SaaS budget is zero and make a case for why certain tools need to be purchased again.
- The 80-20 rule or The Pareto principle should help you with deciding which products to axe and which to keep.
- Offering more product variations does not lead to linear increased sales.
- Having low cash flow stops your business from growing faster than it could.
- Investing in supply chain optimization can also free up cash flow for your business.
Timestamps
- 00:00 - Introduction to Financial Challenges in E-commerce
- 03:02 - Understanding Inventory Management and Cash Flow
- 18:48 - Optimizing Indirect and Overhead Costs
- 25:02 - Negotiating Discounts and Customer Retention
- 26:29 - Identifying Overspending in SaaS and Marketing
- 28:23 - The Importance of Inventory Management
- 30:40 - The Unsexy Side of Business Operations
- 32:00 - Applying the Pareto Principle to Product Portfolios
- 39:00 - The Dangers of Overcomplicating Product Offerings
- 41:03 - Focusing on Strengths and Delegating Tasks
- 44:28 - Helping Founders Achieve Financial Clarity
Guest Resources
As always, if you have any questions or anything that you need help with, leave a comment down below if you're interested.
Don’t forget to leave us a review on iTunes if you enjoy our content.
Thanks for listening!
Until next time, happy selling!
