#013: How to Stay Ahead of Retail Cash Flow Challenges: 2 Strategies for Success

Is cash flow keeping you up at night?

This is the third episode in our Top 7 Money Makers to Focus on in 2025 series, and we’re diving into one of the most misunderstood aspects of retail success: cashflow. Cathy shares practical, tactical strategies to help retailers plan for expenses, build reserves, and stay ahead of cash flow challenges. With the right budgeting and forecasting tools, you can reduce financial stress, improve profit, and create a business with stronger margins and long-term growth.

What You’ll Learn:

• Why Cash Flow Matters: Discover why positive cashflow is more important than profit in retail.
• Understanding Your Cash Flow Cycle: Learn how to project future needs and prevent surprises.
• Tactical Financial Strategies: Build savings, reduce cash flow stress, and explore creative ways to boost revenue during slow months.

Key Takeaways:

• [05:43] The importance of forecasting cash flow projections to avoid financial surprises.
• [07:24] Tactical strategies like setting aside 2% of daily sales, negotiating vendor terms, and creating a sales tax account.
• [19:48] A Millie Moment from our own host – Cathy Danovan Wagner.

Resources and Links:

• Episode #8: The Hidden Costs of Inventory Hoarding – Maximize inventory turnover and improve your liquidity.
• Episode #7: The #1 Step to Take to Increase Your Profits – Learn how raising your initial markup can improve your cash flow.
• Relay Bank: A great option for setting up separate bank accounts for savings or sales tax.
• Already at multiple 6 figures and ready to scale past 7 figures? Watch our free class: 3 Steps to Maximize Profit & Reduce Overwhelm.
• Not quite there yet? Watch: How to Increase Your Sales So You Can Consistently Pay Yourself & Your Staff.
• Follow us on social media for more updates! Facebook / Instagram
• Join the community with ambitious store owners in our Richer Retailer Facebook Group

Your Millie Moment:

1. Identify two or three months where your cash flow is most strained.
2. Create a cashflow projection to better understand your cycle.
3. Start setting aside 2% of your daily sales to build a reserve.
4. Explore one creative income stream idea for your slower months.

Have questions? Reach out via email!

Share this episode with a fellow store owner and help them tackle cash flow challenges!

With the right strategies and a proactive mindset, you can take control of your finance, build financial stability, and create a business that truly supports your dreams. You have the power to make it happen because you deserve to be a richer retailer!