When you own a small business, cash is king. Preserving your capital helps you pay suppliers, cover weekly payrolls and still keep the lights on when the business inevitably runs into problems.
“Cash–it’s like ammunition,” Tom Maoli, a small-business expert, told CBSN. “If you’re at war, you want as much ammunition as you can possibly have.”
Cash flow problems can be common with small businesses. Maoli suggested owners try to keep as much of their working capital as possible and instead seek alternative funding to finance more of their operations.