According to Small Business Administration (SBA) nearly 66 percent of small businesses will survive their first two years.
Do not open your doors and then shut them because you did not understand cash flow as well as care management.
No matter how great your aging life or geriatric care management business model is, you can’t survive if you can’t manage your company’s cash flow. According to a U.S. Bank study, 82 percent of business failures are due to poor cash management. Most geriatric care managers started a business with a great idea- care management. They did not open a business understanding of cash flow or its business killing dangers
What is cash flow? Cash flow is the money that is moving (flowing) in and out of your business in a month. If not enough money is flowing in from billable care management customers, you can’t make payroll or pay your rent and other bills. If more money is coming in than is going out, you are in a “positive cash flow” situation and you have enough to pay your bills. If more cash is going out than coming in, you are in danger of being overdrawn, and you will need to find money to cover your overdrafts.
Even if you’re a brilliant care management entrepreneur in every other way, you must stay squarely focused on managing your company’s cash flow to avoid putting your business in imminent danger.
Businesses die from prolonged periods of negative cash flow:
spending more in a month than the business is taking in. 96% of small business fail in 10 Years because they can’t pay their bills or cash flow problems
One of the fastest cash-flow killers – results from unpaid invoices from clients. If you aren’t being proactive about collecting payments from your clients, you could be on your way to a dangerous cash-flow situation.
Businesses go bankrupt from prolonged periods of negative cash flow: spending more in a month than the business is taking in. Care Managers have to watch cash flow and the results, in the beginning, are taking no salary yourself, hiring no help and keeping the second job until you can get enough clients and cash flow.Find out more in the YouTube from My Geriatric Care 1 Channel.