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 the business. Without cash, you delay your ability to grow your business and getting 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 another question: “What am I missing?” There may be several systems missing that have a direct connection to cash flow, including:
1. Accounting Systems
2. Sales Systems
3. Marketing Systems
4. Lead Generation Systems
These systems are the very ones you need to:
· Track your money and create a plan to make informed business decisions.
· Pre-qualify prospects and close on more sales without being pushy.
· Acquire new customers or clients essential to grow your business.
· Develop additional products or services to existing customers.
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 your solution if you go out of business.