Many Businesses Fail Because of Poor Cash Flow Management
Cash flow refers to the movement of money flowing into and out of
a business. Positive cash flow is when you bring in more money
than you spend. It is what every business owner strives for
because it enables you to pay your liabilities and invest in your
business.
Conversely, if you are spending more money than you are bringing
in, it is called negative cash flow. While there will be times
when every business experiences temporary periods of negative cash
flow, too many months of negative cash flow can - and will - cause
a business to fail.