Five All Too Common Reasons Startup Entrepreneurs Experience Cash Flow Problems!
Have you noticed, just how fired up, enthusiastic and positive most aspiring startup entrepreneurs are?
It’s almost infectious, is it not? In the beginning, they are most definitely on fire.
And slowly over time, like the rest of us, as they gradually experience a few speed bumps here and there.
They don’t completely burn out, they just sort go into another gear. And they’re not quite as gung ho as they were initially, right?
And suddenly, they begin to realize, not only can they not do it all by themselves, but they also eventually discover,and come to the harsh and very sobering realization, they really don’t want to. 😀
And often times, this game changing revelation, also helps them recognize, these five, all too common reasons, for their re-occurring cash flow problems.
So What Are These Five All Too Common Reasons Why Some Aspiring Startup Entrepreneurs Constantly Experience Cash Flow Problems!
First and foremost, unfortunately, far too many aspiring startup entrepreneurs, tend to try and wing it.
And in business and in life in general, you definitely need a well thought out plan. Which is not to suggest, your plans don’t or won’t change. Because rest assured, they most certainly will.
But trying to start a venture and bank on it being successful, strictly because you’re a go getter, but not necessarily a strategic planner.You’re definitely courting trouble. 😀
Unfortunately Far Too Many Aspiring Entrepreneurs Suck When It Comes To Understanding And Effectively Managing Small Business Debt!
Please take notice, to the five, all too common reasons why, aspiring startup entrepreneurs, constantly experience some type of cash flow problems.Both in the short and long term.
1.) Potential reason for cash flow problems #one: Unfortunately, far too many aspiring startup entrepreneurs, simply have no clue, when or how, to properly cut, totally unnecessary expenses.
For ex; they’ll over spend on higher end commercial office space, fancy equipment and the like.
But they’ll try and spend the bare bones minimum, when comes to investing in personal development and or effective legal representation etc.
They tend to want to travel first class and spend far too much, on their brochure-ware type of, non list building type of website and or blog.
Far Too Many Aspiring Startup Entrepreneurs Place More Emphasis On Where They Plan On Vacationing As Opposed To Studying Their Cash Flow Analysis!
2.) Potential reason for cash flow problems #two: Being way too optimistic about (projected) future sales and gross front end profit margins.
Especially, if the market place is already littered with similar businesses and or services.These aspiring startup entrepreneurs, somehow (always!) seem to convince themselves, and their initial investors, the basic laws of economics and startup businesses, simply don’t apply to them and or their all too common situation.Until of course, it does. 😎
3.) Potential reason for cash flow problems #three: And typically, startup entrepreneurs, rarely seek out, qualified mentors, (like Angel Investors) with proven track records in the exact same and or similar businesses or industries.
Until of course,they start experiencing severe, potential business killing, cash flow problems.And often times by then, unfortunately, it’s too little too late.
Some Strategic Cash Flow Forecasting Can Help Head Off A Ton Of Potential And Predictable Problems!
4.) Potential reason for cash flow problems #four: Far too many aspiring startup entrepreneurs, (especially in their initial launch phase), tend to not only overspend!
But they also tend to overspend on way too many unnecessary non essentials.Convincing themselves and any and everyone who will listen, why these over indulges, are in fact vital necessities. 😀
5.) Potential reason for cash flow problems #five: And finally, sadly, far too many aspiring startup entrepreneurs, especially of the -work from home- variety, they almost never, have any type of proven, collection process, for late and or totally unpaid invoices.
And they quickly discover, nothing interrupts their cash flow projections more, than overdue and or unpaid invoices. 😀
Meanwhile, their bills and billing cycles continue to mount and become due. And they typically have no proven systems and or processes in place, for quickly diffusing these re-occurring problems.
For these and many other, all too common reasons, far too many aspiring startup entrepreneurs, tend to consistently experience, various cash flow problems.Any questions?
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