The 18% Solution - Cash is King
Every account on a company’s chart of accounts has a purpose but not all are created equal. Nobody knows for sure who said it first but virtually everyone agrees that cash is king. It always has been and always will be. Cash – it’s the fuel that powers the business engine. Without an adequate supply of cash all businesses will fail, even those whose sales are growing. Startups and small businesses are particularly vulnerable to this because they often don’t have adequate reserves and they don’t understand cash management. A study by US Bank concluded that as many as 82 percent of startups and small businesses fail due to poor cash management. 82 percent! Let that number sink in for a minute. Now that I have your attention you’re probably wondering how do I avoid being part of the 82 percent? Find more resources at http://SBDCTampaBay.com/resources. Content provided by Bill Burnham, Florida SBDC at USF business consultant.
