Comments on: Income vs. Cash Flow: Why Growth Can Kill Your Business

By: Paris Vega, Graphic & Web Designer

Paris Vega, Graphic & Web Designer — Wed, 28 Oct 2009 04:51:35 +0000

Great advice. I needed every word of it. I’m currently building my Graphic & Web design business, and I’ve experienced a lot of problems with cash flow. This article really helped me think about my business finances in a healthier way.

By: Sean Marten

Sean Marten — Thu, 20 Sep 2007 21:03:48 +0000

Rob, your remarks about Cash Flow are accurate and timeless. I’ve worked in the equipment finance industry for many years – and several times each and every week, I speak with business owners that should better understand the concepts you’ve summarized.

Cash Flow challenges are not limited to only new entrepreneurs, established businesses in a growth mode choke out due to mismanagement of cash flow.

I like your definition of Cash Flow = the amount of money that a business receives and spends during a particular period of time. It’s not sales made on credit. It’s money you have collected and can really spend.

I would like to add that the converse is true as well. Cash Flow is also money that you have not already spent. For example, in my business we tell people to “allow the equipment to pay for itself over time” by spreading the cost of the equipment over 60 months rather than a lump sum upfront. You use the money earned as you get the benefits of the equipment – rather than paying the entire cost in advance.

By: Nancy

Nancy — Wed, 06 Jun 2007 04:43:09 +0000

We often forget things, especially if we don’t use them more often. I believe that it goes with everything we know. Constant reminder or practice should keep it active and refreshed.

By: Marie

Marie — Tue, 05 Jun 2007 01:24:28 +0000

This should be a good reminder.
Some of us needs to be reminded about important things, especially those who are not familiar and alway forget.

By: Bill Dotson

Bill Dotson — Mon, 04 Jun 2007 19:28:57 +0000

Rob, you are right on the mark. When I work with clients on their sales process, we always go over how one can bring money in fast. Deals on credit are for cash-rich companies. Otherwise, get paid ASAP.