Cash flow Overview for Small Business Owners - Includes Examples
If you'd like to discuss how I can help you, please visit The Resourceful CEO at https://theresourcefulceo.com/schedule for a free 20-minute consultation.
Cash flow is a topic near and dear to my heart.
I clearly understand the significance of cash in managing daily operations. Since small and medium businesses are smaller entities that don't have access to the capital markets to get cash quickly or at lower funding rates, cash is often a huge issue for you.
According to the SBA, from 1994 to 2019, approximately one third of businesses survive two years while approximately 49% survived five years.
That means that the survival rate for the first two years are critical. The biggest issue cited for "failure" was lack of capital, also known as cash.
The reasons behind the lack of cash can vary from poor planning, poor marketing, or too early of a market entry, or just not having cash on hand to pay the bills because of poor access to credit or loans.
The fact is that without having cash, the runway to success is much shorter. If you have strong cash flow from operations financing or selling old assets, if you've been in business for awhile, you have time to make adjustments or rebound from mistakes.
Watch the rest of the video for the remainder of the transcript / what I say.
This video is meant for all small business owners. However, women business owners and Black business owners may have had less exposure to these concepts. If so, I trust this helps!
If you'd like to discuss how I can help you, please visit The Resourceful CEO at https://theresourcefulceo.com/schedule for a free 20-minute consultation.