Business Cash Flow - Hard Money Bankers
The cash flow of your business is like the same as the blood running through your body. If the cash is plentiful and producing profits, then your business will run healthy. Choking the cash flow by not having enough revenue, large enough margins or too much overhead will lead to a business heart attack. One very important thing to also realize is that just because there is cash flow, doesn't mean the business is as healthy as it may appear. If a business has a product that is not producing profits on the revenue, then what appears to be cash flow is just a disguise for an impending explosion. For example - If I am selling widgets every month to the tune of $100,000, that sounds great. The problem is, if I am spending $105,000 on overhead, at some point each month I will have to juggle that revenue at a small loss. If that gets carried away, it can sink a business. The better way to say make the original statement is the profitable cash of your business is what keeps a business healthy. Revenue means very little with out profit margins.
Ian Walsh215.839.3271
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