It’s amazing how cash can slip through the fingers of even the most frugal small business owner. It just happens without you realizing it. It’s not like anyone walks out the front door of their house and says, “I’m going to spend all the cash in my business, so I have to struggle to make payroll.” For some business owners, this is never the case, but for others it is an ongoing struggle.
The process starts by making sure you have enough money to make rent and cover most of your fixed expenses. Then your vendors want paid for the last order before they will deliver the next. You have unexpected repairs happen the same month as you initiated an advertising campaign. Then a snowstorm hits the area and traffic through your store comes to a grinding halt. It happens just that fast in some businesses.