Avoiding cash flow crises is crucial for the success and sustainability of your construction business. Managing cash flow is vital for small business owners. Poor cash flow management can create significant challenges even if your business is profitable.
Cash is a fact; Profit is an opinion
A cash crisis can be emotionally devastating and even kill your business. If you've ever had to beg, borrow, and steal to cover tomorrow's payroll, you know what I mean.
Understanding cash flow
Cash flow refers to the money moving in and out of your business. Cash inflows come from sales, interest earned, and investments. Cash outflows cover rent, payroll, bills, and supplier payments. Positive cash flow means your inflows exceed outflows, while negative cash flow indicates more money going out than coming in.
