About Entrepreneurs: The Single Most Important Thing in Business
 | from Scott Allen
What's the single most important thing in any business? Cash flow. Period. Don't let anyone tell you otherwise. Without it, you're out of business. With it, you can get through almost anything else.
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In the Spotlight |
The Single Most Important Thing in Any Business
A friend of mine, an entrepreneur, recently hit rock bottom, very publicly. No one suspected it was coming. To the outward observer, his business seemed to be doing well. But he hadn't taken care of the single most important thing in any business: cash flow. Without it, nothing else matters much, because you won't survive. Sometimes that means taking work you don't really want, but when you're in survival mode, that's what you have to do.
| | Cash (Flow) Really Is King
One of the most important lessons entrepreneurs have to learn, often painfully, is that cash really is king. I'm not talking about paper money -- I'm talking about cash flow. Simply put, it doesn't matter how much money is coming in the future if you don't have enough money to get from here to there. Understanding the basics of cash flow is an essential business survival skill.
| Creating Financial Projections
Creating financial projections for your startup is both an art and a science. Although investors want to see cold, hard numbers, it is tough to predict your financial performance three years down the road, especially if you are still raising seed money. Regardless, a short- and medium-term financial projection is a required part of your business plan if you want serious investors' attention. Here are some tips for crafting solid financial projections.
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