1AL. The most important component is cash flow and the management of cash flow. Whether a small business is a traditional brick and mortar or service business, if the cash flow is not consistent or properly managed the business will fail. Strong management of cash flow will assist maintaining expenses, sales, and COG. A service business may have regular customers, but if the organization does not see new customers and the COG and expenses increase, the cash flow will decrease. If there is a constant flow of existing and new customers, there will be a continuous cash flow. The small business must keep track cash flow, cost of goods (COG), new client’s, expenses, and sales to remain successful. Every small business that I know use quickbook to manage each of these areas.
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