In The Trenches A Finance Survival Guide for SMB CEOs: Liquidity, Hiring, Budgeting, Capital Allocation & More
Jul 3, 2025
Nicholas Andrews, Founder of Aspen Consulting Group, specializes in finance and operations consulting for small and medium-sized businesses. He delves into essential cash management strategies during economic uncertainty, emphasizing the impact of financial literacy among employees. Nicholas discusses the importance of transparency and how it enhances engagement, while also offering guidance on hiring finance leaders effectively. He encourages focusing on accomplishments rather than duties on resumes, ensuring that new hires can drive financial success in their organizations.
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How to Determine Cash Reserves
- CEOs should base cash reserves on business nature, historical cash flow, and burn rate.
- Look at cash conversion cycles and monthly cash rich/lean periods to decide appropriate reserve months.
Managing Cash in Inflation
- In high inflation, protect business by locking in prices or purchase contracts.
- Model inflation impact on customers to forecast and adjust cash needs accordingly.
Liquidity Levers to Pull
- Improving cash flow by speeding up accounts receivable collection often yields more impact than raising prices or volume.
- Raise prices only if it doesn’t cost sales; carefully analyze breakeven when increasing volume.
