We talk about it in our Definitive Guide To Cash Flow Advisory. The basic concept of why cash flow is important is simple: if a business can generate consistent, positive cash flow, it’s going to be a great success... if it can't, you've got trouble.
But while everyone knows that you need to collect more than you spend for long-term sustainability, it is much easier said than done. Small business owners are simply too busy running their business. They have to continually deal with customers, suppliers and employees, and their finances almost always take a back seat.
And this is exactly why cash flow advisory is so important: even though entrepreneurs know they should collect more than they spend, they don’t have those optics for a number of reasons. They are quite literally, flying blind.