When new businesses fail, cash flow is the killer in the vast majority of cases. Cash flow problems don’t just appear out of the blue; they creep up on you slowly. Small businesses stay strongest and enjoy the most stability by keeping the cash coming in on a consistent, steady basis.
It’s tempting to think that as long as your business is profitable, everything’s okay, but resist the urge. The problem with profit is timing: It often turns up too late. The balance sheet for a swimsuit business might look rosy for June, July, and August, but there are many salaries and suppliers to pay before then.
We’ve noticed that all successful businesses have something in common — the ability to fine-tune the flow of funds in and out of their doors. And whether you’re a one-man band or a brick-and-mortar brand, you can benefit from learning what Sage Payment Solutions clients do to avoid cash-flow crunches and keep growing despite the killer odds.