Cash Flow Solutions

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When a business is having cash flow issues, there are only four things that they can do.

1.      Earn more revenue: Go out and sell more of whatever it is that the company sells

2.      Decrease Expenses: Cut expenses. Generally, companies start with what is considered to be nonessential spending and move to the more critical functions as the cash flow gets worse.

3.      Take on Debt:  Debt can eat into cash flow later. Use with caution.

4.      Bring on a partner with money: Usually partners want not just a share of the profits, but a share of the decision making as well.

Often the solution to cash flow issues lies in a combination of solutions, not just one.