Cash Flow - Your Lifeline for Business Survival (Revised)
The last 18 months have been very challenging. COVID restrictions, engaging with business support mechanisms, relying on goodwill of staff and customers and perhaps with some good fortune we have survived.
A significant lesson has been the management of cash flow and preparing for the unexpected.
A dominating cause of business failure has been inadequate cash flow.
Those with the foresight to create a contingency fund will reflect more positively on their experience, those who failed to do so will perhaps have learned a key lesson.
Managing cash flow is a fundamental aspect of doing business, yet how many of us do it?
If large corporations struggle, we can appreciate vulnerability of small businesses.
If an invoice is not settled when expected or an unanticipated expense occurs it throws all financial management out of kilter.
Risk management should be part of every business finance strategy ensuring there is adequate contingency, preparing for the unexpected and creating business resilience.
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