Why Small Businesses Fail Reason #4 - Poor Cash Management
In this video above, Dr. Paul Borosky, MBA, discussed Reason #4 why small businesses fail, which is poor cash management by small business owners. He shared a real-world example of a trucking client who struggled with monthly cash shortfalls until they implemented a custom daily cash budget. Tracking revenues and expenses restored control, stability, and financial confidence.
Transcript: Why Small Businesses Fail Reason #4 – Poor Cash Management
Introduction
So, why do so many small businesses fail?
Hey all, Dr. Paul Borosky here — business consultant and founder of the Organize-Plan-Grow™ Strategy.
We are up to number four of my top ten reasons why small businesses fail, and number four is poor cash management.
Real-World Example – The Trucker Client
Recently, I worked with an over-the-road trucker. He was really good at securing loads and kept himself busy six days a week. He was also pretty good at cutting costs.
However, at the end of each month, bar none, he was always much lower on funds than he anticipated.
The Solution – Custom Cash Budget
To help him out, we created a custom cash budget.
With this tool, it only took him a few minutes each day to log in his revenues and expenses.
At the end of the month, he could see exactly where his money went — and his actuals matched his projections almost perfectly.
The Lesson – Control and Awareness
From that point on, he had a much stronger understanding and control of his costs.
The moral of the story: when you track your financials, you control your financials — and that means fewer financial surprises.
Closing Message
Hopefully this was helpful!
Let’s go ahead and wrap it up and pack it up.
Dr. Paul Borosky here, owner of Quality Business Plan.
Some of the services I offer include:
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Business consulting using my Organize-Plan-Grow™ Strategy
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Professional business plan writing
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Financial modeling for pro forma financial projections
As always — go out, make a little bit of money, and don’t forget to like, comment, and subscribe.
Thanks!
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About Dr. Paul Borosky, MBA, DBA.
Hey all, Dr. Paul Borosky, MBA and DBA here. I am the founder of Quality Business Plan, creator of Dr. Paul's Organize-Plan-Grow Strategy, author of numerous published books on Amazon, such as Why Small Businesses Fail, and publisher of over 1,000 business focused videos on YouTube. For over 14 years, I have helped entrepreneurs and small business owners turn business concepts and dreams into tangible businesses through my business plan writing services, in-person and virtual business consulting, as well as with my financial models.
