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Article: Cash flow-where do those bucks go? (Management).
- Article from:
- Reeves Journal
- Article date:
- October 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Most companies go out of business in their most profitable year. I bet you didn't know that. Most companies also don't fail for lack of work, and they don't necessarily go out of business because they are unprofitable, either. So why do they fail? Cash flow problems. Cash flow can-and does-kill more companies than any other factor except improper pricing. Growth is great, if it is "planned growth." Unplanned growth, however, can-and often does-put profitable companies out of business. There are three points of unplanned growth that are critical to your company's success.
Before we review these points of growth, let's take a step or two back and look at where many ...