In fact, one can almost bet on a downturn, even if it’s a small one happening every five to ten years or so. It’s understood in the business world that companies have bad years. ![]() Maintaining finances month to month while leaning on the occasional bridge loan is not a healthy way to run a business. Pandemic aside, it is simply unrealistic for a company to expect to survive long term without robust cash reserves. The organizations that survived the lockdown are the ones who were prepared for a catastrophe and were cash-flow rich.Īs a CFO, I understand the ebbs and flows of business. Others managed to stay afloat for a while, but eventually their cash flow ran out too. ![]() Some businesses folded early in the pandemic due to not having sufficient cash reserves on hand. ![]() One of the biggest issues businesses tackled during the Covid-19 pandemic was cash flow and cash flow management.
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