Cash flow is when YOU actually get paid money
Not the other way around…when you pay someone else. Too often,What Your Cash Flow Stinks? Making Money Online is about Cash Flow Articles online businesses end up getting into a negative cash flow position. They end up paying out more money to every Tom, Dick, and Harry who they think can help them make money online. All that really happens is more money is going out of their bank accounts than actually is going in. Sound familiar?
Cash flow is the biggest business necessity for anyone starting out. Cash flow, when it runs short, indicates that there is a serious problem.
Cash flow is crucial to the survival of an online business
In the long-term, a viable online business must eventually get profitable or find some investors to keep giving you cash to make up for your losses. Unless, you are the next scientist with the answer to cold fusion, you are unlikely to get outside investment for your small business venture.
Making money online requires getting into a positive cash flow position as soon as possible or else you’ll be burning through your own cash, bank accounts, and credit cards. This situation hurts, hurts, really bad.
Most people want to make money online and get rich
Of course, everyone does but just getting by with a few hundred dollars a month in positive cash flow would go a long way to being successful with a business venture. Having ample cash on hand will ensure that the wheels of the business keep turning. There must be enough cash to continue marketing efforts, re-invest back into the company, sink into new R & D, and most importantly to provide the owners with the life style they seek.
Cash flow isn’t the same as profit and loss
Believe it or not, a company can be profitable while experiencing cash flow problems that drive it to bankruptcy. Cash flow is a popular way to see how well a company is performing excluding specific line items or tax strategies caused by accounting practices. Cash flow is a critical area for all companies to manage, improve, and forecast. However, it means different things to different organizations. Cash flow is different from profits. Profits don’t guarantee money in the bank. Money in the bank is the most important ingredient to daily operations.
Making money online; living by profit numbers and sales