Discuss strategies these business owners used to manage their working Essay

Discuss strategies these line of merchandise owners used to manage their working capital - Essay Examplelan Lutchman, the president and co-owner of Finagle bagel and his wife Laura Trust, to a fault the president and co-owner of owners of the company, use to manage their working capital. Allan reveals that they painsed the company in October 1998 after both of them quit their previous jobs to venture into the food industry (WileyPlus, 2014). Trust starts by noting that as a great deal as they ventured in a bloodline they knew nothing about, they were sure that venturing in the food industry was a sound investment.As the two proceed, they begin to acknowledge that maintaining the right cash flow is critical for business success. Therefore, since they started the business by obtaining a loan the two business partners had to ensure that the business had enough smooth-spoken cash to meet its short-term obligations. The first working capital management that the partners used was ensu ring that a prominent part of their revenue comes in the form of cash. Allan reveals that more than 50% of their income in the retail business is in cash form while the rest is in credit form (WileyPlus, 2014). The credit cash also come in the next 24 hours. Accordingly, having most sales in the retail in the form of cash has helped the business maintain enough cash flow, which it can use to service its short-term obligations and operational expenses easily and without any problems. In fact, Allan reveals that, since all the revenues come in immediately, they do not have to postponement for 30 days to pay their bills (WileyPlus, 2014). Secondly, Trust, the co-partner in the business says that the business also tries to negotiate for a seven-day trade credit period. She asserts that they negotiate for a longer trade credit period with their suppliers to allow them clock to get paid for the products they sell on credit. In fact, Trust reveals that they have been lucky to work wit h tensile vendors who allow them decent terms to get them paid back for the credit they take.Additionally, Allan states that they try to manage their