CRITICAL FACTORS IN BUSINESS SURVIVAL:
LIQUIDITY AND CASH FLOW
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Being profitable does not necessarily mean being liquid. A company can become insolvent and fail because of a shortage of cash, even while profitable. Cash flow is crucial to an entity's survival. You can have the most formidable brand, product or service in the world, but if your business runs out of cash, you are bound to fail.
A business liquidity crisis can grow over time, only to be noticed when it may seem insurmountable or too late. Not addressing certain cash flow problems head on or simply hoping they will get resolved on their own, is the best recipe for financial disaster. Furthermore, when tough decision need to be made, fear or pride may stand in the way.
AVOID FINANCIAL STRESS
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