Managing cash flow and fixed costs

“One of the biggest challenges for creative businesses, especially fast-growing enterprises, is the management of cash flow. When businesses fail, it’s frequently because of a cash flow crisis rather than lack of profitability… An unprofitable business will inevitably run short of cash but even profitable businesses can face a cash crisis if cashflow isn’t managed carefully.” Read on

David Parrish T-Shirts and Suits 

One of the biggest challenges for creative businesses, especially fast-growing enterprises, is the management of cash flow.
When businesses fail, it’s frequently because of a cash flow crisis rather than lack of profitability. The gap between cash outflows and cash inflows becomes too big and they run out of cash. An unprofitable business will inevitably run short of cash but even profitable businesses can face a cash crisis if cashflow isn’t managed carefully.
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Published 06 July 2009.

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