It’s important to recognise that CASH is what keeps your business alive. Despite the fact that cash is the lifeblood of a business many SMEs don’t truly have a handle on their cashflow.
At any stage of the business life cycle, cashflow is of vital importance to the health of your business. One saying is: “revenue is vanity, profit is sanity, but cash is king.”
Put simply, businesses go bust in the long term because of the lack of sales or profit but, in the short term, they can fail because they don’t have enough cash to pay their bills.