Finance: Greatest Business Pitfall

Q: What is the greatest pitfall in growing a business?

A: The greatest pitfall is access to cash – more businesses fail for this reason than any other. Cash constraints require business owners to carefully identify/prioritize opportunities; carefully manage investments; increase focus on invoicing and collections; and reduce/manage inventory. In the current “credit crunch” environment, business owners can’t count on getting additional operating capital from traditional sources (e.g., banks, SBA) so they must put more focus on managing operations to create and conserve cash.

For resources on how to overcome the cash crunch, check out these biz tools:

Success Secret: 5 Sources of Quick Cash 
60-Second Guide: Managing Cash Flow
Podcast: Surviving the Recession
Download: Cash Flow Template

Sue Hartman, Guest Blogger
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2 Comments April 3, 2009