Avoid the Cash Flow Crisis in the Start-Up Companies

Entrepreneurship is one of the most desired professions in this world. There are many people, who plan to start companies around the world. There is a tremendous pressure on the entrepreneurs in the initial stages of the business venture. The critical issue they face is the cash flow problem. This article gives you a brief picture on the cash flow crisis in the start-up companies.

Cash Flow is the money that comes into the business from the customers and goes out by spending on important activities in a specified period of time. Why most of the companies fail in the initial stages just because of the cash flow problem? The answer is simple and straightforward for this question. It is just because of concentrating on other insignificant things rather than finding customers.

Yes, finding the customer is what the solution for this problem. Until and unless the business owner finds the customers who pay the money for services, he will struggle in the cash flow crisis and that eventually leads to winding up the company. The customer is the only source to pump in the money to the business survival. You can get a business loan from a bank by having a comprehensive business plan but what is the use of the business loan if you don’t find the customer for your services or products.

Especially for service oriented firms, having initial customers are very important. If there are no customers, the resources in the company including the business owner sit idle and this is not at all a good sign for the company. So, get the initial customers to survive in the business.

Most of the people start thinking about setting an office without having customers in hand. This is a bad strategy. If you don’t have customers to pump in money, it is a foolish strategy to spend all rest of money of the office setting and other insignificant things. Just think for a while, which is the most important aspect; is it the customer or having an office? Of course, you need to have office to make sure you need to show your credentials to the customers but what the use of the office if there are no customers in hand. It is something like spending whole the money you are left with in the initial stages of the start up on insignificant things.


So, focus on getting the customers in the initial phase. If you get the customers, the customer money will take care of everything you need such as an office building, other resources. Finding the customers is the only solution to avoid the cash flow crises in the initial stages of the start up

Entrepreneurship- Who is an Entrepreneur?

Entrepreneurship is a risky career for many people but for some, it is the way of fulfilling the dreams. An Entrepreneur is somebody who always strives to do something different and innovative. As many people always say they it takes money to become an entrepreneur but is it is not always true. Yes, it doesn’t take money always to become an entrepreneur. It takes a lot of persistence, determination and willingness to do something different is what matters most.

Entrepreneurship is not only meant for some of the educated individuals; anybody who has got an innovative idea or solution to fulfill a need gap in the market can become an entrepreneur. Entrepreneur might face a lot of challenges in the initial stages of the start-up. It is the persistence and perseverance that make the entrepreneur to be focused on the far horizon. As an entrepreneur, you need to take care of many different things at the time of the start up. It is important that as an entrepreneur, you need to have support form your family and friends. This support gives you courage to make things done in your own way.

Before planning to start your own firm, you need to do a lot of things as it is mandatory to analyze each and every situation that can affect your start-up. Be it money, market research, finding a mentor or getting the partner; you need to be utmost careful in all these situations. All these things matter a lot and all these things can affect the start up either positive way or negative way. It is the responsibility of the entrepreneur to ensure all these things to work for him and against him.

There are many other issues you need to analyze before going to zero in on an idea. An idea may be wonderful in your view but if the customer does not require your service or the product based on your wonderful idea, it does not make any sense to go ahead with the same. So, market research is what the solution that will make you decide on the idea. Be clear on your idea. It is better if you get some hands on experience before getting into the business. It is not always fun to enter into the business; it takes a lot of smart work that backed by the cash flow.

Unless you maintain the cash flow in the initial days, your company may not survive in this competitive environment. Business is all about serving the need gaps and getting the money to survive. To conclude, Entrepreneurship is a profession that comes out of the individual life experience.

Entrepreneurship comes out of life experience

Entrepreneurship is a dream for many people across the world. Individuals leave everything in the process of becoming entrepreneur. Of course, there is a lot of risk involved with the tag, entrepreneurship but there lot more benefits you gain as a entrepreneur.

Go through this piece of writing to know more about the entrepreneurship. Get ready to know what makes individuals to go after the entrepreneurship even there is a lot of risk factor attached to it.

Entrepreneurship is not a regular day-to-day job; it is a passion of the individual who wants to create some thing new, innovative, novel and what ever the adjectives you want to add. It comes from the life experience; yes, an entrepreneur starts establishing himself through the life experience. Most of the individuals who strive to become an entrepreneur may not have enough funds to start a venture; still, he wants to go after the same just because his life experience teaches him that there is something out in the far horizon that turnaround your life and drives in such a way to fulfill your dreams. This is the reason why, entrepreneurs keep on striving to achieving excellence to fulfill the dream.

Entrepreneurs look sometimes senseless and ruthless. By nature they adopt this virtue as many times in the startup stage, they feel like things are not moving if you are very sensitive and sensible. This disgusted experience obviously the reason behind the changes in the behavior pattern and all these changes lead to achieving a great cause.