Cash is King: Thrive, Not Just Survive in the Crisis

Jodea Pearl Abalos
March 30, 2020

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Listen to a crew of experts to help you plan through these tricky times. Listen to this podcast for more details and share across groups and to fellow sellers in the community.

A bit of a background

Nate Ginsburg is the CEO of Seller Placques helps with finance and Operation services.
Lyden Smithers is the Director of Ignite Brands, an Amazon Account Management Services.

What You Need To Do Right Now

If you are starting off, work with someone who have e-commerce experience.
- Fix your books now.
You need to have your financial statement and books fixed before anything else. AFTER THAT then you can focus on other parts of your business.
Businesses do not go out of business because they are doing badly, but because they have no cash flow.
Be on top of your numbers.
It is easy to just not look at the numbers but this is what you nede to be doing.
Distinction of profit versus cash flow:
- Profit is Revenue minus Expenses
- Cash flow keeps you in business.
Go through your profit statement and look at your lowest hanging fruit:
- Look at those which are not ROI generating
- Look if it is an expense that you need or driving your ROI.
- You can also reduce it, it depends.
You need to have a good projection for a long time.
Track your sales on daily, weekly or monthly basis. It is preferred that you have your hand on the pulse of your business.
- TRACK DAILY -you can quickly react on an over spend!
Clarity KILLS FEAR!
- Start tracking your cash inflows and outflows over a period of time.
- Update those assumptions — these projections give you clarity.

How to manage your cash

Keep your cash in the bank if you want to keep it simple.
Attack your biggest expenses first — you are trying to optimize cash flow first before profit.
Get the help of your supplier, cash flow projection is the other side of sales projection.
Show them the bigger picture and what your plans are.
- This way, they can grant you extra payment terms.

Get Help From Your Supplier

If you don’t know your sales projection, cash flow projection to know what kind of help you will need.
Plus you get to show your supplier how they can help you and come up with a win-win solution.
Create a partnership with your supplier.
Show them the projected growth and how your order can grow.

Best practices

Ship by ocean or sea.
You will need someone in the middle who can vouch for you.
Each supplier will be different, they have different situations and cash flow issues too.
A bigger company will have bigger capability to help you.
Understand the process of how your product gets to you.
Look for the win-wins and present it why it is better for them to assist you, how it will benefit them.
Optimize on softwares, costs, and suppliers.
Rather than have the PPC cost come out of your credit card, you can use your rewards cards, use cards that can give you cash backs.
You can also UP your limit so you get to pay at a later time.
Some awesome financial products:
- The Brex Card gives you zero interest for 60 days.
- PLASTIQ allows you to make you payments charged on your credit card.
- These give you 60 days on your inventory management.
Look for products that give you 50% or more profit margin to keep your head above water.

To get help, or if you have any question then get in touch with us: danny@sellersessions.com

If you are looking for help or more information check out: https://sellersessions.com/case-studies/

Connect with our guests:

Nate@SellerPlex.com
hello@lydensmithers.com

Our Sponsors:

Thrasio – Lead Sponsor https://www.thras.io/
Sellers Alley / YLT Translations – Boat Party https://ylt-translations.com/ & https://sellersalley.com/
Urtasker – Merchandise https://www.urtasker.com/
GEMBAH – Care Packages https://gembah.com/
pingpong – Lanyards https://pingpongpayments.com/
Alex De Lilla – Design and branding https://alexdelilla.com/

SellerSessions LIVE — Tickets SOLD OUT!

Send Danny an email to get on the wait list: Danny@SellerSessions.com

About SellerSessions 2020

Our venue this year: The David Game Keynote Theatre, with tiered seating.
This year we are supporting a charity and a portion of the proceeds will be given to Tomy’s pioneering studies for prevention of babies born asleep: https://www.tommys.org/
We will give away 5 FREE tickets for single-parent Amazon sellers. If you know anyone please get in touch to get the details.
Confirmed speakers and more to come:
- Brandon Young
- Dr Yev Marusenko
- Destaney Wishon
- Zack Franklin
- Nadine Schöpper
- Liran Hirschkorn
- Ivelin Demirov
- Dr Ellis Whitehead
- Paul Harvey
- And yours truly, Danny McMillan. I will be hosting the show and speaking on a topic.