3 days ago
The Real Reason Small Businesses Run Out of Cash (Even When They're Profitable)
Profitable and cash-strapped. It sounds like a contradiction — but it's one of the most common situations small business owners find themselves in. How? Timing. You complete $20,000 of work in March. Your client pays net-30, so the money arrives in late April. Meanwhile, you've got payroll due April 1st, rent April 1st, and a vendor invoice that was due March 15th. Your income statement says you're profitable. Your bank account says you're sweating. This is a cash flow proble