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Understanding Cash Flow is important for every small business owner.

Cash flow represents the net amount of cash and cash equivalents being transferred into and out of your business. It is essential for assessing the liquidity, flexibility and overall financial performance of a business.

A few points to note:

· Even profitable businesses can fail if operating activities do not generate enough cash to stay liquid.

· It is not possible for a business to sell its way out of a cash flow problem.

· All things being equal, the faster you grow, the greater the cash flow problem can be.

Trust me, I’ve been there before.

Therefore, as a small business owner, it is very important to either master the essentials of cash flow yourself (i.e. good management of accounts payables and receivables, having cash reserves, short-term financing, etc.) or ensure that someone on your team does. Always, keep in mind that your accountant is not responsible for your cash flow – you are.

Compliments Business Growth Handbook.

About Janice George-Pinard

Janice is a Certified Business Coach whose extensive professional experience in various aspects of business has set her on a mission to help business leaders turn their Vision into Reality. She works with them to develop and implement strategies, best-practice systems and take action steps that will help move their business forward. In addition to Business Coaching, she is an Entrepreneur, Certified Life Coach, Trainer, Wife and Mum. She also works with Christian business owners who desire to run their business based on Biblical Principles.

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