In Episode 12 of The Business Development Podcast, host Kelly Kennedy interviews Justin LaRocque, the CEO of ROC Advisors. Justin, a seasoned entrepreneur and chartered accountant, shares valuable financial advice for growing businesses. The episode delves into the topic of working capital, particularly in Western Canada, where many companies work with large businesses in the oil and gas sector. Justin emphasizes the importance of managing cash flow and offers insights into receivables, payment terms, and factoring options. He also highlights the challenges faced by business owners in handling working capital and provides practical strategies for generating revenue and optimizing expenses. With his extensive experience in finance and his passion for driving change, Justin shares valuable insights that can help businesses navigate the complexities of working capital.
In this episode, Kelly and Justin have an engaging and informative discussion about working capital and its impact on businesses. They touch on various aspects, including payment terms, slow payments, and the need for proper cash flow management. Justin stresses the importance of understanding working capital and provides actionable advice for optimizing it, such as exploring factoring options, generating revenue from old inventory, and seeking shareholder loans. He also highlights the challenges faced by businesses in the oil and gas sector, where delayed payments can significantly impact cash flow. Through their conversation, Kelly and Justin offer valuable insights and strategies that can help businesses effectively manage their working capital and achieve sustainable growth.
Key Takeaways:
• It is important for businesses to consider working capital and cash flow management.
• Factoring can be a useful tool for businesses to cover receivables and improve cash flow.
• It is important for businesses to manage payment terms with clients and ensure timely payments.
• Large companies, particularly in the oil and gas sector, may have challenges with payment terms and cash flow.
• It is important for businesses to be proactive in addressing cash flow issues and exploring alternative sources of funding.
• Proper financial management, including accurate and timely invoicing, is crucial for business success.
• It is important for businesses to understand the risks and potential challenges associated with rapid growth and contract expansion.