Optimizing Cash Flow: 7 Steps to Less Stress and a Better Business
It’s a simple truth: “Hope is not a strategy.” It’s true in so many fields of human endeavor, but none more than cash flow. And with so many business owners relying on hope to avoid a cash flow crisis, it’s no wonder some businesses wind up in a place known for a very different saying; “Abandon all hope, ye who enter here.”
Even business owners and their CFOs or financial managers who know better than to “hope” for positive cash flow tend to believe that if a business is profitable, then the cash flow will be fine. They are unlikely to fare any better because the two concepts are fundamentally different: profitability is a simple comparison of revenue and expense; cash flow describes the sources and uses of cash, plus the movement of that cash over a period of time.
