The statement "Cash is king" is not an oft-repeated saying for nothing. All types of entrepreneurs have come to realise-whether through the easy way or the hard way-that without efficient cash flow management, a business can't survive, much less prosper.
The number one way to prevent business failure is to properly manage your working capital.
Working capital is defined as the difference between your current assets and current liabilities. If this figure is positive, you have working capital available. This working capital may exist as inventory, accounts receivable or cash on hand.