Cashflow Part 1: Why is it So Important?
Cash flow in your business is super important. Most new business owners ignore it, and in my opinion that’s why most business go broke after two years. Because most people don’t understand why cash flow is important to a growing business I’ve put together this two part presentation to help.
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How much do you know about cash flow? If the answer is ‘not much’, you need to watch this video. Cash really is king within a business. It is absolutely vital and I cannot stress that enough. People don’t tend to think about cash flow at all when they are starting or running their own business – until they run into problems with it.
I’m going to show you in this video how it is possible for a business to be wildly successful and yet still go under. Make sure you pay attention to the message I’m going to give you here about small business cash flow. If you do you will be able to defend and protect your own business from the possible consequences of losing control of your cash flow.
A growing business can have a huge effect on your business cash flow. Everything can be thriving; you can have countless numbers of customers; you can be growing and succeeding and yet you can still go under if you don’t keep an eye on your cash flow.
In this video I’ll share a basic example with you that shows how expanding a business has a crucial effect on the ongoing cash flow. Once you are aware of this you will be able to think ahead and make sure your business doesn’t suffer when you are aiming to expand it. The figures I use in the example are very simplified in order to make the lesson clear – but once you grasp it you will be ahead of many other small businesses today.
If your cash flow is too tight it may only take one negative event to send your business under. If you know how to monitor it and plan ahead however, you will be protecting yourself and your business against possible disaster.
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