Inadequate Cash Flow

Seven Traps That Kill Small Businesses

Trap #1: Failing to Honor the King

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This is the first video in a seven-part series that examines poor management practices and habits that kill thousands of small businesses each year. For other videos in this series, see the links to the left.

In this video we revisit the old adage, "Cash is king." We revise it to say, "Cash flow is king." In general, small businesses do not fail because they are unprofitable. They fail because, profitable or not, they run out of money.

Based on this reality, this video highlights some of the more common mistakes small business owners make in monitoring their financial health. It then explains the importance of the Statement of Cash Flows from your financial reports, shows you how to understand it, and helps you utilize this statement to manage cash flow more effectively.

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