As all business owners know, cash is the life blood of businesses. Managing it well is often a challenge and can consume considerable time and energy. Most business owners say that managing their financial affairs can be a real challenge especially when finance management is not the owner’s strength.
To add to this challenge, all businesses have strong and weak sales seasons! For many businesses their high seasons are October, November and December, which often leaves January, February and March as very lean months.
Even profitable businesses can face serious cash flow challenges while sales are slow or they are waiting for money to come in. Even profitable businesses can go out of business when they run out of cash, which is the reason for the saying ‘cash is king’.