Recently, CB Insider welcomed Stephen Murphy, Canadian Western Bank’s Group Head for Commercial, Personal & Wealth for a virtual fireside chat. Murphy chatted with Jason Maghanoy, head of business development at SJC Media and associate publisher of Canadian Business, and shared some insight into managing businesses of any size.

The conversation kicked off with a discussion of common cash flow challenges that small businesses face today. Murphy, who leads CWB’s banking centre network, including teams focused strictly on solutions for business owners, started the conversation by acknowledging how difficult it is today to manage cash flow. “You’ve got geopolitical uncertainty, a wonky economy, still-high interest rates, recent run-up in inflation, incredible transformation in technology that impacts all business owners including social media and cyber crime,” he said. “All of this uncertainty is overwhelming.” 

Maghanoy continued the discussion by asking Murphy about the metrics that business owners should keep track of, despite all these challenges. Margins, inventory turnover, how quickly payments are received and how quickly payments are made need to be planned out well, Murphy explained. It’s all about managing how the money is moving around—you can be profitable one day but be unable to make payroll the next day simply because you mismanaged where money was going. 

Murphy then explained that accessing tools to provide insights and information on cash flow, as well as leveraging partners and advisors, are key to staying on track when it comes to near-term cash flow and long-term growth goals. On that, Maghanoy asked Murphy how entrepreneurs can pick between a traditional bank and fintech to help manage their cash flow and how business owners can leverage the benefits of both. The most important thing, Murphy answered, is how easy it is for the business owner to receive value. As a bank, CWB partners with fintechs to integrate their innovative tools with their products to provide a bigger, simpler tool kit to clients. That being said, Murphy emphasized that relationships still matter in this digital age, and trusted, deep relationships with a bank or an accountant can give critical and personalized advice as the business grows. 

Jumping off on that, Maghanoy asked Murphy about the types of services and expectations entrepreneurs should be looking for at a bank. Murphy replied that focus is how CWB differentiates and serves their clients well. “Through that focus, we can align and take away the scale advantage that the big [banks] have,” he said. That means zeroing in on tailored advice and customized solutions —which Maghanoy identified as a good practice for any business. 

The conversation concluded with Murphy stating that, in times of significant uncertainty, what business owners really need is to focus on what they can control – including the tools and relationships that give them the ability to exert that control.  “You can have great ideas, but if you don’t have a handle on the details, and aren’t able to show how it all adds up, that can be really tough,” he said. “I feel strongly that business owners who care for their cash flow as much as they do their clients will thrive, regardless of what’s happening in the broader economy.”

View the complete virtual fireside chat here.