Cash Flow Problems? Here’s What To Do And What To Avoid
Few events are more common, and potentially more devastating to a business, than cash flow problems. It doesn’t really matter if they’re the result of low sales, a bad economy, or a market misstep. If you want your business to survive, you’ve got to see it through while taking as little damage as possible. Unfortunately, many business owners (and even their accountants) treat a lack of cash flow in their business like a typical consumer treats an inability to pay the monthly bills. They separate creditors into two categories–essential and non-essential–and then ghost those deemed non-essential. While this approach buys you time to get back on your feet, it also destroys your credibility with the vendors and contractors that you’ll need once your cash flow gets better. Your business reputation isn’t as easily measured as consumer credit scores, but it’s just as real, and a bad reputation can linger as long or longer than a bad credit score. Read more at Inc.