EssentiaLink Beats a Cash Flow Crisis Without Resorting to Financing

Westminster, CO, February 19, 2009 --(PR.com)-- No one knows how many businesses will fail as a result of today's economic downturn. One key to surviving and possibly thriving is through streamlining operations and taking critical steps to free up working capital and improve cash flow.

Bill Douglas is no stranger to cash flow issues. When he started EssentiaLink, a company that provides supply chain solutions for small and medium businesses, the problem was never growth or customer loyalty, it was always cash flow. According to Mr. Douglas, CEO "our system gives customers access to millions of products and they buy them. But, we have to make prompt payments only to wait 38-60 days to get paid. Not at all good for cash flow.”

EssentiaLink had to find immediate solutions. First they enabled remote workers and sent them home to work. This enabled them to reduce their Office expenses by 75% or more. The next important step was to outsource the bulk of their IT operations. Mr. Douglas observed, “through our Managed Services Division, we helped one of our customers, a $100M manufacturer, pare down their IT staff to just 2 people. Seemed it was time we took our own advice.” A great success story for Business Process Outsourcing.

By freeing up working capital, EssentiaLink continues grow even as credit markets tighten up. . . a lesson Mr. Douglas wishes he had learned sooner. “Bloated departments that are not easily scaled to operational needs are a surefire way strain cash flow.” Fortunately, with reliable partners and good planning, there are a lot of ways to restructure IT, procurement and other departments to free up working capital.

Bill Douglas of Westminster, Colorado is CEO of EssentiaLink, winner of 13 growth awards in 3 years.

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