Day 28 of 31 Days to Freedom in Your Business

I have worked with businesses that have cash flow issues and those that don’t.

One of those types of businesses isn’t really profitable.  Wanna guess which one?

If you have cash flow issues, you must cut expenses.  If you don’t cut expenses, you won’t live to see another day.  Rip off the band-aid, and start cutting expenses.

Once you get the cash flow under control, you can start to really increase revenue.  You can’t meet the demands of increased business without some capital.  You only get capital with positive cash flow.

If you have some crazy opportunity to significantly increase revenue (AND profit), but you need capital to do so, you can open a line of credit.  This should absolutely only be used to cover expenses above what are usual to create an unusual revenue.  Make it a safety net to make great opportunities possible, not life support to give you the impression that your business is okay when you are really cash flow negative.

Cash is king.  

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s