Five reasons why small businesses fail


Problem:

This mini-essay discusses one of the top five reasons why small businesses fail: running out of money.

How can this business be out of cash? We've been turning a profit for months and sales are growing.

Do not confuse cash and profits. The business owner cannot spend profits--only cash. Moreover cash must be available, when needed, to keep the business in business.

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Accounting Basics: Five reasons why small businesses fail
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