ASK LEO: HOW ESSENTIAL IS CASH FLOW IN A BUSINESS INVESTMENT ENTERPRISE?

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(Edited)

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When starting up a business, a lot of things need to be out into consideration. Some of the things are location of the business, things to produce, wants and needs of the people living in that environment, innovation, marketing, management and the likes. But all of these things revolve around how the business is going to be financed. The financial aspect needs to be highly considered because it's what all other aspects of setting up the business will be living on. The financial aspect; the cash flow is what will make the business grow. That's more like the outcome of all the capital spent in a business Investment.

What's cash flow?

Cash flow is the total capital of the amount of money a business Investor Investors, comes in and out of a business Investment. It's the cash flow that begots the profit outcome that an investor have spent on a business.

How important should it be considered in business Investment?

  • Cash flow helps you to know how your business is moving; how you are making gain or profit.

  • It helps to reduce mismanagement of funds that is going in and out of a business.

  • Cash flow also assist the growth of a business. When all records are being kept, it assists the business owner to know how the business is progressing.


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3 comments
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Very shot and easy orientation no stress, this is awesome✌

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