“Business owners sometimes believe that profit is what matters most, but profit is secondary. Cash flow matters most.”
How do I turnaround my Company and get it back to where it use to be?
Payment of business expenses (outflows) can be controlled to more of a degree than receipt of sales deposits.
Cash Flow can be controlled by focusing on the outflows of Business cash assets.
Reasons that Company Cash Flow can become strained and turn negative:
*Cash Flow issues can occur after a period of slow down in business sales, or even after a period of a sharp increase in business sales
*Cash Flow fluctuations are more dramatic and severe when a Company has a high leverage ratio (high debt loads with high payment amounts caused by short-term debt undertakings)
*Attempting to fill Cash Flow gaps or shortfall with short-term Business Debt can exasperate Cash Flow issues
*High amounts of leverage (debt) on your Company's balance sheet can cause insolvency (more liabilities than assets) and put your Company at risk
Business profit is secondary, cash flow matters most.