4 problems of inconsistent cash flow in business

[Augusta]

A business cash flow should be consistent for the business to flow smoothly when you are having inconsistent cash flow then running the business successfully become a problem.

Some business owners might not know, but the truth is that it is always good to have a consistent level of cash flow in your business to stop the below problems from cropping up in the business

There will high level of Startup Costs.As the cash flow might not be enough to cater for the emerging costs

low level of Profitability. Inconsistent cash flow means that sales might be low. hence, this will bring low level of profit

The growth of the business will be a stunted one. High consistency of cash flow will bring quick growth which will aid the business to expand, but inconsistent cash flow wouldn't help the business grow financially
Not Creating a Cash Flow Budget.

Collapse of a business is eminent if one continue to have inconsistent cash flow for a long period of time

 

[IB D]

Unstable cash flow is the reason so many businesses cannot grow and expand. When business cash comes in trenches that are unpredictable. It is difficult to plan the business and set it up for expansion. I believe cash flow should be stabilises in any business that desires growth and expansion.