There’s an old saying in business: “Profit is queen, but cash is king.”
Do you understand the difference? If you’re a business owner, it’s critical that you do -- especially now, with the economy still sputtering and banks reluctant to make loans. It could determine whether your business survives or dies.
If all sales were cash on delivery, cash flow wouldn’t be an issue. You’d sell your product or service, collect your payment, and put your money in the bank. But that’s not how most businesses operate these days. The vast majority depend on a healthy cash flow cycle.
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Author:Tracy Eden
