Why Cash Flow Can Proactively Grow Your Business

Until your business starts to generate a healthy positive cash flow, your business will continue to

operate at a loss. This state of business affairs is a shaky time in any upstart’s humble

beginnings. Once your business’s negative cash flow takes a hard 180-degree turn for the better,

this will place your business in the position to take many steps forward with the development of

a comprehensive growth strategy. This all sounds nice on paper, but making it work is the real

magic. Here are a few examples of how positive cash flow will make it possible for your

business to grow.

Positive Cash Flow Means the Potential for Better Employees

One way to ensure a company will grow by leaps and bounds is to produce enough of an initial

positive cash flow to be able to afford putting the right people in key positions. With the right

leaders and subordinates in place, your business will have a team of dedicated employees that

know their job and do it well. Optimal performance may cost a little more initially, but it really

makes the difference when you hire the right people to help propel your business to that next

level. When this strategy works, it tends to produce an even greater cash flow state. This in turn

justifies hiring better quality employees whose experience pays your company back many times

over for every dollar spent in employment wages.

Paying for Expert Consultants

If you want to really boost your company’s revenue, then working with expert consultants that

have a track record of producing solid, tangible results is the way to go. Positive cash flow

makes it possible for your business to pay experienced industry leaders to help guide your

company down the best possible path of success. A consulting expert is like having a coach who

is completely familiar with what your business needs to do to get where you want it to be. In

addition, a consultant will help to take years off the learning curve for your niche industry. This

will in turn save you tons of money by not needing to reinvent the wheel every time you want to

make the slightest advance in your industry.

Access to More Products and Supplies

The worse situation your business could possibly be in is one where demand is high, but you are

unable to afford the supplies to meet that demand. Nothing hurts a business like watching lost

opportunity play out right before your eyes. With a healthy positive cash flow, your business will

be able to stock its products and purchase any necessary supplies it rapidly needs in a timely

fashion. This leverage helps to make it possible to better satisfy the demand inherent in the

marketplace for your particular company’s niche. When you have the cash flow to justify

ramping up logistics to the point where you can get what you need on demand, the end result is

that you never have to miss another high demand opportunity in the marketplace again.

Conclusion

In all these situations, your cash flow is making it possible for your business to spend money to

make money. The resultant increase in revenue is further justifying the expense. This is what

doing excellent business is all about. It is the formula that must be in place in order to ensure true

business growth takes place.

Jeff Ramson is an Investor Relations Expert with over 25 years of Wall Street experience.