Many business owners are very well versed in how to boost sales and run their businesses in normal times. However, few of them have the right knowledge about what to do when a company is having cash flow problems or on the verge of a business crisis. Currently, many of them are faced with the decision of whether to terminate their business or to continue it.
The financial crisis triggered by the subprime mortgage crisis has caused a serious economic downturn, with the number of bankruptcies and insolvencies of small and medium-sized enterprises and sole proprietorships being on the rise.
The reality is that these business owners and their families have lost all of their assets and are now on the road with uncertainty about their future livelihood.
However, when they are driven by cash flow, saying, 'I have to honor this bill no matter what it takes,' it is not uncommon for them to be unable to make calm and objective judgments as they are clouded by the thought of having to secure funds at all costs,
falling into the hands of high-interest or shady moneylenders, which can be fatal and lead to the failure of their business.