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Explore cash flow strategies, like leveraging pre-sales for inventory, using ad platform invoicing, and credit extensions to scale e-commerce businesses. Personal insights highlight supplier negotiation, inventory management, and low-risk financing for growth.

In this episode, Jordan West with guest Grayson Cross gets into the nuts and bolts of cash flow management and financing for e-commerce brands. Grayson shares practical strategies for leveraging customer pre-sales, utilizing monthly invoicing options from major ad platforms, and optimizing credit cards and invoice financing services to extend payment timelines.

Listen and learn in this episode!

Key takeaways from this episode:

• Embrace Change:
  Change is essential for growth despite its challenges.
• Leverage Pre-Sales:
  Pre-sell limited editions to fund inventory, as seen in the gaming industry.
• Personal Interaction:
  Founders should engage customers through personal digital content.
• Ad Platform Payments:
  Use invoicing from platforms like Facebook and Google to manage cash flow.
• Smart Credit Use:
  Utilize credit cards like Amex Plum with net 60 terms, and tools like Ampla for extended payment terms and rewards.
• Invoice Financing:
  Services like Settle and Melio offer extended payment terms to ease cash flow.
• Tiered Financing:
  Use a mix of financing options strategically, from asset-based lending to revenue-based financing.
• Supplier Negotiation:
  Build strong supplier relationships and negotiate better terms for improved cash flow.
• Inventory Management:
  Keep inventory aligned with sales; use solutions like Portless for better flow and shipping.
• Strategic Debt:
  Leverage debt wisely for growth, balancing risks and rewards.
• Post-COVID Strategy:
  Adapt to post-COVID challenges to sustain growth.
• Entrepreneurship Reality:
  Entrepreneurship requires practical knowledge and self-awareness.
• Cash Flow Priority:
  Keep OpEx under 20%, using a mix of financing tools, and maintain accurate accounting methods.
• Hierarchical Financing:
  Start with low-risk options like supplier terms before exploring riskier financing models.

Today’s Guest:

Grayson Cross, a proven serial entrepreneur and the head of growth as well as a full partner at Weekend Digital. Weekend encompasses various branches including investment, digital, studios, and motorsports. Grayson has deep expertise in digital marketing and media buying, having started his entrepreneurial journey at the young age of 14. With a robust background that includes managing significant sales for a leading firearm accessory brand and working closely with notable industry figures like Taylor Holiday, Grayson is adept at helping businesses scale and achieve substantial exits, particularly through effective cash flow management and lean operational strategies.

Recommended Apps/Tools:

Portless: https://www.portless.com/

Growth Plan: www.upgrowthcommerce.com/

In this episode's sponsor is Revenued - is a financial technology company that provides businesses with revenue-based financing solutions. Instead of relying on credit scores or collateral, Revenued offers funding based on a company's revenue. This allows businesses to access capital quickly and repay it as they generate income.

Learn more here: Revenued