Too many companies go belly up not because they aren’t profitable, but because they have poor cash flow. With an unhealthy cash flow, you may need to delay payments—antagonizing your subs and suppliers—and you may end up paying interest on cash (by drawing on your line of credit or, far worse, your credit card). On the other hand, a healthy cash flow means you can keep up with your bills and stay on good terms with your subs and suppliers, as well as take advantage of date-driven discounts. Here are 10 simple tips for keeping your business in the black.
This article originally appeared in The Journal of Light Construction.