The sad truth is that cash flow surprises kill many startups, even though they should have been adequately funded to survive. Overall, 90% of small business failures are caused by poor cash flow, according to the D&B Small Business website. Cash is king when it comes to the financial management of a growing company, so this is not the place for shortcuts and sloppy practices.

Sponsored Content


Comments


Written by lyceum
499 days ago

Martin: As an experienced purchaser I learned to understand the power of cash-flow. If I could negotiate beneficial terms of payment, say 90 days net, and the sales department could get paid in advance or within 30 days, that would improve the cash flow in a great deal.

I am a bit surprised that "small businesses now wait nearly 50 days on average to get paid." What is the general payment period on the North American market nowadays?



Written by BizRock
506 days ago

This is so helpful, you can minimize surprises and failures in this area.Thanks for this article.



Log in to comment or register here.

Learn How to Build a Firm Benefits Foundation

While health care reform hasn’t gone into full swing mode yet, your business can lay a firm foundation for 2015 by following …
Subscribe

Kenji Crosland: What Makes a Person an Entrepreneur?

What makes a person an entrepreneur? Maybe it's just a decision to do something different with your life. That's how … More
Editor's Picks

Have you tried BizSugar's new video posting feature?
Post your small business video to BizSugar today!
It's time to up your game with video on BizSugar!
Did you know you can now post video on BizSugar?