Host John Haskell welcomes back Sarah Delavan to continue the conversation on profit margins. We are delving into the impacts of gross margin on cash flow and strategies for reaching higher margins. We discuss the importance of maintaining a cash runway and the role of channel strategies in determining profitability. Sarah shares insight into the intricacies of managing debt effectively and the importance of price strategy and product mix to get the most amount of revenue.

Be sure to listen to Part 1 of this conversation: Episode 22: Let's Talk Gross Profit Margins with Sarah Delevan

Sarah Delevan is a Food Industry Finance Expert and champion of the Good Food Revolution, with deep expertise in small business economics and sustainable food systems. Known for challenging traditional business media narratives and outdated frameworks, she’s revolutionizing how small food businesses approach growth and success by providing financial strategies tailored to their unique needs and values. Combining her hands-on experience as a Good Food Business Owner and Sustainable Food Sourcing Specialist with extensive study in entrepreneurship, accounting, and finance, Sarah brings rare insight to the intersection of profitability and sustainability. Her practical approach helps food entrepreneurs build resilient businesses that thrive while staying true to their mission. Today, she empowers food business owners to reject one-size-fits-all business advice and embrace financial strategies that support both their bottom line and the strengthening of local and regional food systems.

In this episode, we cover: 

• The importance and impact of gross margin on cash flow
• Why businesses need a cash runway
• Strategies for improving gross margins
• Seasonal business challenges and maintaining cash flow
• Thoughts on maintaining cash reserves within a business

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Find the complete show notes here: https://www.ranchrightllc.com/post/how-does-gross-margin-affect-cash-flow-with-sarah-delevan-episode-23 

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Resources & Links: 

• Book a Free Discovery Call to Learn More 
• Ranching for Profit 
• Ranching.FYI 
• Wally Olson, Olson Ranch LLC

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