The Small Business Administration estimates that about 600,000 new small businesses are launched each year. Yet, two-thirds will only survive two years, 44 percent survive four years, and 31 percent survive at least seven years.
What’s the bottom line on the high rate of failure? At the top of the list – poor cash management contributes to these failures.
Cash flow is like the lifeline to the heart of your business. Without cash, you delay your ability to grow your business and get your talents and gifts into the hands of those customers who need it most.
In order to grow your business, you’ll need to have a positive cash flow; that is, more cash flowing into your business than leaving your business. It may seem like a no brainer that if you need more cash flow, you need to attract new customers or sell more services. For many, however, achieving a consistent positive cash flow is easier said than done.
So, it may be time to ask yourself this question: “What am I missing?” There may be several systems missing that have a direct connection to cash flow, including your accounting system. (View the video for these other systems).
If you don’t know your cash balance, you’re missing a major piece of your accounting system. You can remedy it by using a software, like Quickbooks. At a minimum, review your financials once a month by scheduling an appointment with your CPA or your Accountant.
Your accounting system is the very one you need to track your money and create a plan to make informed business decisions. Remember, cash flow is like the lifeline to the heart of the business. Without cash, you delay your ability to grow your business.
Do you know what the biggest heartbreak of all is if you don’t get your money handled now? Those clients who will be denied the solution you provide if you go out of business.
Want to discover:
- How to set up continuous cash flow?
- Proven ways to systematize and monetize your marketing?
- Specific systems and processes that continuously fill your prospect pipeline?
Get started with the Wake Up Profitable with the Entrepreneurial Edge System Implementation Program. Discover the systems approach to profitability EntrepreneurialEdgeSystem.com