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The #1 KILLER of all small businesses is... | eMastery.com

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Published on May 3, 2012

Most entrepreneurs focus on profits, but understand this... Profit is like a cancer, but a lack of cash flow is instant death for any company.

Also, we're seeing these trends now where people as creating businesses with no plans for revenue or profits. In essence hoping to be the next big "tech" acquisition. People often forget that these large acquisitions are merely anomalies. A business with no plan for revenue or profit, is simply a hobby.

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Transcription
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his is a quick little video geared towards entrepreneurs who are just starting in business or those who are aspiring to be entrepreneurs. I just want to touch on something. A lot of people focus on profitability from the get-go in a new company, when they should be focusing more actually on cash flow. Because at the end of the day profitability is kind of like a cancer, you can fix it over time as long as you have a steady cash flow. If you don't have a steady cash flow it's like a heart attack, your business dies right away. If you can't pay payroll, you can't pay rent, you can't pay off your loans or credit card debts or your suppliers, you have no business. Your business stops.

I myself have been in situations where I have very steady cash flow for a long period of time, and then all of a sudden one month starts to dry up, and you're like whoa, what am I going to do, and it's a scary thing. And again profits... you can fine tune over time. And this doesn't take into account the people out there who start businesses who have no actual plan on how they're going to bring in revenue or the revenue streams...or how they're going to be profitable. They think they're going to be the next Instagram or something like that when they're acquired by Facebook for a billion dollars, or one of the other companies that are acquired for 5 or 10 million dollars here and there. Those companies are anomalies. 99.9% of companies who go that route end up drying up and dying. So you don't want to be one of those companies.

There's a saying that a business with no plan for profitability is simply a hobby. So keep that in mind. What's more important than profit from the get-go is cash flow. So really focus on getting cash in your business, and then fine tune it from there. Listen, I really value your input on these videos so please leave a comment below. It will help me immensely in creating new videos that will bring value to you. It would mean a ton. So have a great day and please leave a comment, and like. If this is on YouTube, like it. Thanks.

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