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Article: Close attention to cash flow is vital to business survival
- Article from:
- Deseret News (Salt Lake City)
- Article date:
- November 25, 2007
- Author:
CopyrightCopyright 2007 Deseret News (Salt Lake City). Provided by ProQuest LLC. (Hide copyright information)
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I have asked many entrepreneurs where they find the most
headaches in running a business, and the most consistent answer is
cash flow problems.
There are so many pressure points when cash is short: facing your
employees when you cannot make payroll, answering to vendors who do
not hesitate to call when payments are late, communicating to
customers that you will not be able to deliver an order due to lack
of inventory, or facing a default on a credit line with the
associated loss of creditworthiness.
Entrepreneurs often confuse cash flow with profits. A company can
generate profits and still have cash flow problems. If customers pay
late or inventories increase too quickly or the company ...