SFS Minute 724: Cash Flow

This year, we're diving into every aspect of entrepreneurship, aiming to cover every single topic. And this week, we're talking about five mistakes that you should — or can — avoid. I hope you do avoid them during your first year in business. I'll give you the first one right now: One of the most common mistakes is poor cash flow management. You can go bankrupt and run out of money, even if you're profitable on all your deals. It all comes down to managing the timing of your inputs and outputs. When do you have to pay rent? When will the income arrive? A client may be very happy, but still take three to six months to pay. Can you afford to go three months without income and still make rent?