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 that’s serious about growth. Even if you’re meticulous about financial forecasting, things can go wrong.
Negative cash flow is among the challenges your growing small business may face. Let’s say, one month, your business earns R5,000 in revenue but spends R10,000 on outgoing expenses. That’s an example of negative cash flow.
Let’s dive into the causes and effects of negative cash flow and five tips for managing it.