Cashflow measures the flow of money into and out of the business over a specific period of time. Read more: https://marklyttleton.co.uk/what-is-financial-structure-and-why-is-it-important

1. W H A T I S C A S H F L O W A N D
HOW SHOULD IT BE
MANAGED?

2. M A R K L Y T T L E T O N
2
Cashflow measures
the flow of money into
and out of the business
over a specific period
of time.
A business that has positive cashflow is
in a healthy position, with more money
flowing into the business than leaving
it. However, with negative cashflow, the
opposite is true, leaving the business in a
more vulnerable position and potentially
affecting the availability of working
capital to fund the daily operational
expenses of the business.
WHAT IS
CASHFLOW
AND HOW
SHOULD IT BE
MANAGED?

3. 3
M A R K L Y T T L E T O N
Cashflow is the lifeblood of any
enterprise. In its absence, the venture is
liable to perish.
Even otherwise profitable businesses
can experience short-term cashflow
issues. These may arise for a number
of reasons, for example, non-paying
customers, or market fluctuations. It is
therefore crucial for leadership to plan
ahead, producing cashflow forecasts
to highlight potential problems further
down the line. Where a shortfall is a
Times of change within a
business, such as losing major
customers, fluctuations in
consumer demand, or a
general downturn in trading
conditions, can all trigger
cashflow problems.
“
possibility, it is important to either
identify other funding options to plug
the gap, or cut back on spending.
Times of change within a business, such
as losing major customers, fluctuations
in consumer demand, or a general
downturn in trading conditions, can all
trigger cashflow problems. It is therefore
crucial for businesses to have these
regular cashflow forecasts, allowing
them to maintain an adequate financial
buffer at all times.

4. M A R K L Y T T L E T O N .
LEARN MORE ABOUT
THE IMPORTANCE OF MAINTAINING A POSITIVE CASHFLOW BY VISITING THE
BLOG OF ANGEL INVESTOR AND BUSINESS MENTOR MARK LYTTLETON.