“Cash flow is everything.”
— Simon Woodroffe, Yo! Sushi
Businesses don’t go bust because of a lack of profitability. They go bust because they run out cash!
Sadly, many entrepreneurial businesses fail in their start-up and development phases and even mature businesses succumb from time to time. There are many reasons for this. Some businesses simply have poor strategies. Some are overtaken by the advance of technology. Others have poor management, often particularly evident in the financial area where entrepreneurial businesses can be prone to minimising or cutting ‘back office’ costs to the bone. Beware! This kind of penny pinching can often be fatal.