New Business

Can you believe it, cash flow problems is responsible for over 70% of business failure. This fact supports the common saying, ‘A healthy cash flow is the life blood of any business’. Cash flow is the movement of money within a business, both income and expenditure, and is the key for business survival and growth.

It is unfortunate that most experts don’t have their own businesses to experience the peril of poor cash flow. It is very daunting, I have experienced it and today can tell what would turn things around for a poor cash flow. Most entrepreneurs don’t understand that cash flow is not about the figures. It could be a million in and a million out yet that is a very poor cash flow. A healthy cash flow means a piece of the pie goes to your reserves.

You could be thinking harder now that you hardly have cash at hand than when you first started on your business. Now you find it difficult to acquire some stock, get petty cash for the little things or even forecast your business. Watch out, you could be on your way to failure. The disease is with your cash flow. Poor cash flow management leads to business downfall.

History has developed timeless tools to effectively manage cash flow. You may name these tools whatever you want, but they are all centered on proper record keeping. Proper records aid a lot in implementing all other financial and business tools. This could be credit and /or inventory control. I have detailed a FREE">http://www.yeboyesafrica.com/?p=45">FREE resourceful article that gives basics on cash flow management.

Isn’t it best to get advice from those who have traveled the road before? I think it is! I’m blogging at ">http://www.yeboyesafrica.com/”"> yeboyesafrica.com. and have covered the ‘Small Business Cash Flow Management’ subject.

Article Source: ArticlesBase.com - Cash Flow Crap!