The sad truth is that cash flow surprises kill many startups, even though they should have been adequately funded to survive. Overall, 90% of small business failures are caused by poor cash flow, according to the D&B Small Business website. Cash is king when it comes to the financial management of a growing company, so this is not the place for shortcuts and sloppy practices.





Comments


Written by lyceum
2967 days ago

Martin: As an experienced purchaser I learned to understand the power of cash-flow. If I could negotiate beneficial terms of payment, say 90 days net, and the sales department could get paid in advance or within 30 days, that would improve the cash flow in a great deal.

I am a bit surprised that "small businesses now wait nearly 50 days on average to get paid." What is the general payment period on the North American market nowadays?



Written by BizRock
2973 days ago

This is so helpful, you can minimize surprises and failures in this area.Thanks for this article.



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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!