Cash flow is the life’s blood of your business. If your cash flow is negative, meaning that you’re paying out more than you’ve taken in, your business is impacted and impaired. Inconsistent cash flow can lead you to make unwise trade-offs and poor business decisions, due to desperation. At the very least, your business won’t function at its highest level when you have cash flow problems. Consequently, poor cash flow can require that you cease doing business for a while–or go out of business completely.
How Positive Cash Flow Sustains Your Business and Supports Growth
Positive cash flow gives you:
- Stability and buying power: A positive cash flow places you in a strong position and keeps you in the “driver’s seat” in your business dealings. There’s no stress or worry about paying the office rent or losing your property to foreclosure. You’re free to make purchases when you want/need to, without having to spend valuable time trying to arrange financing.
- Only strategic, manageable debt: Having certain types of debt (like a line of credit you can access quickly as needed) can make good business sense. Leasing equipment can offer advantages over buying outright. With good cash flow, you can take on the debt you choose to, and meet these obligations, yet still have the cash to invest in operating your business.
- Growth options: When it’s time to add more locations or replace old technology, good cash flow means that you can take action. You’re not simply reacting to situations and trying to stay afloat as you might be with negative cash flow.
- Opportunity: If you see a good deal, you can act upon it. You can move quickly and decisively to increase inventory or buy assets. You can make that expensive hire that you need to transform your organization. For business flexibility and nimbleness, you need strong cash flow.
Don’t let cash flow issues keep you stalled and struggling. Positive cash flow is freedom, and it’s key to your business’ financial health.
Contact Avery James for cash flow solutions today.