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2011/05/18

Why Cash Flow is King - TMCnet's Financial eNews

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Why Cash Flow is King

By TMCnet Special Guest
Tracy Eden

One of the biggest financial mistakes many small business owners make is focusing too heavily on profitability at the expense of cash flow. There’s an old saying that sums it up well: “Profit is Queen, but cash is King.”


This is especially true in the post-financial-crisis world that continues to linger, with economic growth remaining tepid and most banks still reluctant to loosen the purse strings. Unfortunately, many small businesses that were enjoying record profits, at least on paper, back before the financial crisis hit didn’t have sufficient cash flow to see them through the downturn.


Regardless of where your small business stands today, it’s critical that you understand the difference between profit and cash flow. Doing so may be the difference between whether your business survives, much less thrives, in today’s challenging business and economic environment... Read More




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