Are you a fast-growth company struggling with cash flow (or wanting to avoid a future cash flow problem)?
What some people don’t understand is that you CAN grow yourself out of cash.
It’s true: cash can go down when sales go up. As you grow, especially at a fast pace, things like expenses, inventory, and accounts receivables from current customers can get away from you.
For example, your accounts receivables could start aging because for whatever reason clients aren’t paying, and you’re focused on growing your company, not following up with them. That’s money hiding in your business that needs to be reigned in! The squeaky wheel gets the grease, so figure out how to ask for it or automate it.
If you’re just looking at your profit and loss statement, profit is not the same as cash in your business and doesn’t paint the full picture.
There are 9 other common pitfalls I see companies struggling with that all point to heading towards the Danger Zone when it comes to cash. Click here to discover what they are so you can avoid them and keep cash flowing in your business.