Someone recently sent me a question asking about tips for managing finances for small business owners looking to expand. Small business owners looking to expand face the same fundamental finance problem any other business faces – how to invest in your business while making sure you have enough cash to pay your bills.
You might think that sounds obvious, but if it was so straightforward we wouldn’t have 50% of businesses failing by year 4. Businesses fail for one reason – they run out of money. Unfortunately, running out of money is a symptom of many possible problems and doesn’t necessarily indicate mismanagement of finances.