"Happiness is positive cash flow" read the bumper sticker on the back of a customers custom truck. It was twenty years ago, but the rules are still the same. Positive cash flow puts you on a different footing than negative cash flow. I have had to run my manufacturing business through both and the positive years were much more fun.
The article also speaks of the headache of layoffs. Neither employees or bosses like the experience, and managing of cash flow can help you avoid that. Many people look at their P&L but ignore the Statement of Cash Flows. It can be a fatal mistake to find out you have assets but no cash, and the walls come crumbling in. Money coming in 90 days doesn't pay your bills today.
The article also speaks of the headache of layoffs. Neither employees or bosses like the experience, and managing of cash flow can help you avoid that. Many people look at their P&L but ignore the Statement of Cash Flows. It can be a fatal mistake to find out you have assets but no cash, and the walls come crumbling in. Money coming in 90 days doesn't pay your bills today.