After realizing that working for another company is like squeezing your square self in to a round hole, you decide to make the leap toward the greener pastures of entrepreneurship. With a bevy of information from different sources on such topics as: marketing, finance, customer acquisition, etc., you are ready to say “good riddin’s” to corporate America. But are you ready for the onslaught of challenges that lie ahead?
The reality is that even in today’s economy, profitable companies can go broke and cease to exist over the long-run. It happens for different reasons: some reasons are in the control of the business owner, often times the business owner has no control.
Let’s take a look at one of the most frequent reasons why companies do not survive.
In my college years, I remember my finance teacher telling the class that “Cash is King”.
Without it, company’s starve regardless of how much profit is in the coffers at the end of the year.