Press Release December 8, 2004

Author: Post Crescent
December/16/04
Appleton Post-Crescent Posted Dec. 08, 2004

Ex-banker helps businesses get finances under control Cash flow issues dominate how a company works By MaryBeth Matzek Post-Crescent business editor
Say the words “cash flow” and most business owners’ eyes just glaze over. But not Tony Busch.
Busch, of Appleton, who had more than 25 years in the lending industry on his resume when he started Priora Cash Flow Management in 2003, said businesses can’t live without those magic words.

“Cash flow is the lifeblood of a company,” he said.

How important is cash flow, which is the amount of money flowing in and out of the company? A recent study by U.S. Bank found that poor cash flow management was the No. 1 reason why small businesses fail.

But since many small business owners don’t understand the concept, Busch spent considerable time as an onsite consultant teaching them to keep a close eye on how the money is moving through their business.

“I then found out that after I left, they went back to their old habits. I knew I needed to leave something behind to help them,” he said.

That something is Priora™ Cash Flow Manager, a new software program that utilizes Microsoft Excel to help businesses keep track of their cash flow.

Jim Rosetti of Great American Mortgage Banc in Menasha has seen firsthand how the new software can help small businesses keep track of their expenses and the money coming in.
“It’s an excellent barometer for businesses. They can have a month-by-month of what’s going on,” said Rosetti, who also counsels small business owners through his work with SCORE. “This is such a great tool. I’m telling everyone about it. I just can’t believe no one came up with an idea like this before.”

Neither can Busch, who is now seeking a patent for the product. He based the software on a now discontinued worksheet handed out by the Small Business Administration that let business owners track expenses such as rent, salary and utilities as well as what was coming in.
Busch, who freely admits he’s not a whiz with computers, turned to his friend Dan Schroeder, who works at Thrivent Financial for Lutherans.

“I showed him what I wanted and said ‘Can you do this? Can you do that?’ and he could,” he said.

The new software program isn’t designed to replace other accounting software like Quickbooks or Peachtree, Busch said.

“This is more of a planning tool and focuses squarely on cash management issues,” he said. Priora™ Cash Flow Manager especially comes in handy when a business owner is seeking a loan. Busch said the software clearly shows trends and “has everything that a lender is looking for.” “I really did this to help the business owner understand their money situation. Sure I can go in there and offer a fix or an accountant can handle it, but if the business owner knows their cash flow situation and how it’s working, that helps a lot,” he said.

The software is just one aspect of Busch’s business. First and foremost, he said he’s a consultant who’s goal is to help small business owners feel more comfortable with their financial situation.
“I really want to help even the least financially-minded business owner to understand their financials and gain confidence in working with their lender for whatever needs they might have,” he said.

A closer look at Priora™ Cash Flow Management, LLC

Owner: Tony Busch

Background: Busch had more than 25 years of experience in small business lending before opening Priora™ Cash Flow Management in 2003. He recently launched a new software program that helps business owners monitor their cash flow.

Address: 2658 Sunnyview Road, Appleton

To learn more: Busch offers seminars on cash flow for small business owners. Contact him at 920-734-8531 for more information.

On the Web: www.prioracfm.com

MaryBeth Matzek can be reached at 920-993-1000, ext. 292, or by e-mail at mmatzek@postcrescent.com

Cash Flow: The Lifeblood of Your Company

Author: Anthony T. Busch
November, 5, 2005

Some one once asked, “What is the definition of cash flow?” In its simplest terms, it is the timing of the amount of cash coming in compared to the timing of the amount of cash going out. It is the recognition of these components that leads to an understanding of the cash position and successful management of the cash flow of the company. Knowing when the cash is coming in and when it is going out is crucial to the sound management of any business enterprise.

When borrowing money from a lending institution it is imperative that the business owner fully understand his cash flow. The lender will consider the cash flow of the business as the primary source of repayment of any loans extended to the business. While the lender will also secure the loan with collateral in an amount sufficient to protect the lender from any risk of loss due to possible non-payment of the loan, the collateral is not the primary source of repayment. Borrowers should always be very cautious when borrowing money based solely on the value of the collateral. Lenders are primarily interested in the cash flow of the business enterprise, with a secondary interest in collateral.

Two assets that require extensive management are accounts receivable and inventory. These two assets require considerable amounts of cash to support them. If the inventory is not turned over efficiently and the subsequent accounts receivable are not collected on a timely basis, the company can suffer a significant loss of profits. Consider for a moment that the company must pay for the inventory, add value to it, and sell it generating an account receivable. Depending on the time this takes (a reflection of efficiency) the company may or may not make a profit on that job. While the company waits for the cash from the account receivable to arrive, it must continue to pay overhead expenses. The amount of cash available will determine how long the company can self-fund its operations before having to borrow money from the lender, usually in the form of a working capital line of credit.

Successfully managing the cash flow of the company requires that the owner thoroughly understand the costs of operations and the efficiencies of accounts receivable and inventory. This is just an example of how the business owner can improve the cash flow in the company. Fully understanding the cash flow in the company requires consistent measurement and input from several advisors. One of those advisors is the business loan officer. The lender is a very important partner in the success of any business enterprise. They are indeed a good partner to have.