Working capital is where most problems hide

Working capital is simple in theory. It is the money tied up in running your business day to day.

Inventory sitting on shelves. Money owed by customers. Money you owe to suppliers.

The challenge is getting the balance right.

Too much inventory and your cash is locked up. Too little and you cannot meet demand.

Collect too slowly from customers and you struggle to pay bills. Push suppliers too hard and relationships suffer.

Most businesses do not fail because of bad products or lack of customers. They fail because working capital was not managed well.

The goal is to shorten the cycle. Get paid faster. Manage stock better. Negotiate smarter terms.