As a small business owner, you know firsthand how many obstacles you can face on the road to success. Ups and downs are inevitable and a critical part of any business thatβs serious about growth. Even if youβre meticulous about financial forecasting, things can go wrong.
Negative cash flow is among the challenges your growing small business may face. Letβs say, one month, your business earns $5,000 in revenue but spends $10,000 on outgoing expenses. Thatβs an example of negative cash flow.
Letβs dive into the causes and effects of negative cash flow and five tips for managing it.