Cash flow forecasting is the lifeblood of a growing Amazon business. This episode with Oz Merchant from Viably breaks down why understanding your cash inflows and outflows is crucial for financial health and sustainable growth. Learn how to leverage cash flow data for informed decisions, assess ROI over mere costs, and strategically use working capital to scale your Amazon FBA operation.
Key takeaways
Implement robust cash flow forecasting to anticipate financial needs and opportunities, especially considering Amazon's payment cycles and inventory costs.
Prioritize understanding Return on Investment (ROI) for all expenditures rather than solely focusing on minimizing costs to make more strategic financial decisions.
Utilize working capital strategically to capitalize on the "volume advantage" and scale your Amazon business, recognizing that more capital isn't always the immediate solution to every challenge.
Explore financial tools like Viably to gain clear visibility into your cash flow, access working capital, and build accurate financial models for scenario planning.
Critically analyze key financial performance indicators (KPIs) such as Days Sales Outstanding (DSO) and Cash Conversion Cycle to optimize your operational efficiency and long-term financial strategy.
Cash flow forecasting is a critical financial management tool that provides insights into the timing and amount of cash inflows and outflows. It aids in financial planning, risk management, and overall financial health, making it an indispensable practice for businesses.Having access to capital and enough inventory is critical to keep your Amazon business growing. And with so much money coming in and out, Oz Merchant of Viably tells us all the reasons why cash flow is the lifeblood of the business.Episode Notes:01:00 - Oz Merchant Introduction 01:50 - Creation of Viably 04:00 - How To Use Cashflow in Your Business 06:05 - Cashflow Forecasting 09:55 - Focus on the ROI Instead of the Cost 11:00 - The Volume Advantage 14:00 - Utilizing Viably’s Working Capital 16:40 - Do You Always Need Capital? 20:00 - Using Viably’s Cashflow ToolWebsite: https://www.runviably.com/about-us/ | wellistic.comBlog: gomindhacking.comLinkedIn: linkedin.com/in/ozmerchantTwitter: ozmerchantRelated Post: The Best Financing Loans for Amazon Sellers
Frequently asked about this episode
What does this episode say about finance & fundraising?
Implement robust cash flow forecasting to anticipate financial needs and opportunities, especially considering Amazon's payment cycles and inventory costs.
What does this episode say about supply chain & operations?
Prioritize understanding Return on Investment (ROI) for all expenditures rather than solely focusing on minimizing costs to make more strategic financial decisions.
What does this episode say about amazon & marketplaces?
Utilize working capital strategically to capitalize on the "volume advantage" and scale your Amazon business, recognizing that more capital isn't always the immediate solution to every challenge.
What does this episode say about founder & leadership?
Explore financial tools like Viably to gain clear visibility into your cash flow, access working capital, and build accurate financial models for scenario planning.
What does this episode say about finance & fundraising?
Critically analyze key financial performance indicators (KPIs) such as Days Sales Outstanding (DSO) and Cash Conversion Cycle to optimize your operational efficiency and long-term financial strategy.
