No matter how successful sales are, when it comes down to what really matters - it's cash ... sitting in your account for being paid for products or services you have professionally delivered. Nothing brings this to reality more than a cash flow crisis. I have clients who have taken money from personal accounts to subsidise business accounts. But this isn't sustainable....
To avoid having such situations, cash flow forecasts are critical. Once you have identified an impending cash flow problem, what do you do next?
A small example - My son is learning this fast now as he raises funds for a school trip selling chocolate chip cookie mix jars. He's quickly learned orders are vanity, profit funds his trip BUT as payment is on delivery he has no cash to buy the items needed to make the jars. He then approaches Bank of Mum and Dad to borrow the money. But I explained that he did have other options.
Similarly most businesses immediately go to their bank seeking an increased overdraft or loan too or subsidise through personal funds. There are many other options.
When was the last time you scrutinised your cash flow?