Poor cash management causes 82% of small business failures
The article discusses the importance of funding and liquidity management for small businesses, highlighting that 82% of their failures are due to poor cash management, and 70% of them collapse because of capital depletion. During a workshop organized by the Eastern Chamber, experts reviewed ways to strengthen liquidity, such as financial forecasting, analyzing financial performance, and using models for 13-week outlooks. They also emphasized the importance of identifying break-even points, pricing strategies, and ensuring profit margins, along with exploring suitable financing options for different stages of growth, all aimed at protecting companies from early failure and achieving financial sustainability.
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