. Incorrect cash flow management

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This is when you and your friends are floating down a river on a raft, and you entrust the only oar to your clumsiest comrade. Your raft gets caught in a whirlpool, runs into a huge boulder, or falls into a raging waterfall.

This is exactly what happens when entrepreneurs manage cash flow ineffectively: any stressful economic situation, and the business is already going downhill, there is a delay in employee salaries, there is an inability to pay current expenses and adapt to the new realities of the business environment.

Let's say a company is engaged in leasing warehouse premises. They bought a new warehouse and gave the first tenants a two-month grace period. But no one cancelled the expenses: the owner had to pay salaries, utilities, and security from the first month. As a result, they attracted clients, they liked everything, but there was nothing to pay the expenses with.

What scares investors?

Lack of control over finances can make it difficult to access ecuador consumer email list credit and investment. Banks and investors look at a company's financial discipline before allocating funds.

Aleftina Gimranova, Financial Director on outsourcing from Consulting Center Profdelo

How to prevent such situations
The conclusion is as follows: for any company to grow successfully, a financial strategy is necessary.

This strategy, of course, needs to be managed by someone. Someone who is an expert in this field.

In other words, a competent financial director is needed.

He can build a management accounting system, consolidate all data, eliminate cash gaps and discover hidden reserves. The problem is that not all entrepreneurs can afford to have such a specialist on staff.