Cash flow.
WHAT KILLS NEW BUSINESSES
Running out of cash, more often than lack of profit.
THE DIFFERENCE
Profitable on paper and unable to pay this month's costs.
Caused by timing: money out before money in.
WHAT TO TRACK
What is coming in and when What is going out and when What you actually have
WHAT TO DO
Take deposits Invoice immediately Chase promptly Keep a buffer
THE BUFFER
Money set aside for quiet periods and unexpected costs.
WHAT TO AVOID
Spending revenue before costs are covered Large commitments early Extending credit to customers who do not pay
THE CREDIT POINT
Unpaid invoices are the most common cash problem.
Our invoicing articles cover chasing them.
WHAT TO SEPARATE
Money owed to others: tax, suppliers, staff.
Set it aside rather than spending it.
WHAT TO REVIEW
Your position weekly, in the early stages.
WHAT TO KNOW
How long you could continue if income stopped.
