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Managing Your Business’ Cash Flow
You wouldn’t drive a car without a gas gauge or speedometer, and if you’re driving on an empty tank, you won’t get very far. Then why would you make financial decisions without the proper tools? Businesses must master controlling the flow of...

Turn An Arts And Crafts Hobby Into A Business
Are you searching for a quick way to make an extra income? Why not turn that Cooking Interest, Comic Book Collecting, or Your Retro Clothing Collection Into A Home Based Business Venture! Most people enjoy hobbies they have pursued...

Using The Popularity of Celebrities and Currrent Events to Promote Your Business
In this article, we want to explore the idea of using the popularity of celebrities and current event (news) topics to help market any internet business. The Idea Celebrities and news events are not only popular topics, they are also popular...

Why Do Grandmothers Make Better Home Business Entrepreneurs?
INTRODUCTION There are many home based business ideas that are taking root as an economic force to be reckoned with these days. The people who are taking advantage of them are coming from all types of social backgrounds and the work at home...

Will Your Home Business Succeed Or Fail?
You may operate a home business selling services or products, but no matter which kind of business you're in, there's always a question in the back of your mind: will my home business succeed or fail, or do I have the motivation it takes to keep it...

 
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5 Warning Signals Your Business Might Have A Cash Flow Problem

A key reason for business failure is poor cash management. If you don’t pay attention to your daily cash flow, you face extinction; yet so many business people loss site of their cash flow. No matter how fantastic your company’s products are, you will not survive unless you generate sufficient cash flow to sustain it. It is not the goods or services that are the end-products of your business, it is cash.

1. You are exhibiting a decrease in liquidity (you are running out of working capital).

2. You are overtrading by selling more than you are capable of

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dealing with financially.

3. You have excessive short-term debt.

4. You are missing discounts on your payables or you are paying them beyond the stated terms.

5. You are collecting your receivables slowly and outstanding receivables are piling up.

About the Author

Jeff Schein is a CGA and offers advisory services in the areas of business planning, business modeling, strategic planning, business analysis and financial management for new ventures and growing small businesses. Visit www.companyworkshop.com or mailto:jeff@companyworkshop.com