Maintaining positive cash flow is the only way for a business to make money for both the owners and employees.
Businesses large or small that rely on debt funding for the long term are giving away profits when a disproportionate amount of revenue has to service the debt load. Business owners who understand cash flow can make wise projections that control the destiny of the organization. This creates a framework for strategic decision-making that will position the company for future growth or a future sale.
Ways to generate positive cash flow:
Make sales
Manage expenses - making more sales may incur more expenses; managing the strategic expenses is necessary.
Cut unnecessary expenses
Keep minimal inventory
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