Efficient cash flow is one of the most crucial aspects for a new, small, or medium-sized business to thrive. In fact, it is the sole determinant of the survival and long-term success of any business.
You can consider it analogous to our diets when we are very young. Even after having fizzy drinks, French fries, pizzas, and chocolates during childhood, nothing seems to impact our health or energy to study and play. But as we grow older, the effects of nutritional deficiency from those junk foods start creeping up; it eventually dampens our health and denies us the ability to function at our full potential.
In the same way, inept cash flow management might sustain a new business for a while. But it quietly hinders business growth, preventing it from attaining its maximum efficiency and going the distance. Studies suggest that about 82 percent of small businesses fail overwhelmingly due to poor cash flow management. (Source)
Businesses are entities that experience growth, so the presence of functional hurdles cannot be denied.
Operational challenges arising from poor cash flow
- Increasing fixed costs lowers revenue
If, for instance, your business offers real estate services, you will need more clients to expand your business. Now at the nascent stage, it is not easy to land new clients quickly. And hiring professionals to help with networking and digital marketing can again send your fixed costs through the roof and impact your revenues. That is not what you want.
- Reduced cash savings
Again, if you have just started out as a property developer, gaining access to quality project supply chains can be a game-changer for your business. But how can you find reliable investors for your property? Or how can you buy another property for your next project without exhausting all your funds?
Where do you find support to resolve such operational hurdles through proper management of cash flow?
While starting a business needs massive efforts, sustaining and helping it thrive can seem far more daunting.
But not when you have a platform like BBX to support you.
BBX – Helping create sustainable businesses worldwide
BBX is a global B2B e-commerce platform designed to help your business grow and rise above the competition. Its unique community outreach design helps businesses (of all sizes and across industries) to network, engage and collaborate, and fully capitalize on the digital wave that world is currently riding on.
A unique financial solutions platform with a core focus on customer experience, BBX aims to support small businesses with efficient cash flow management. Businesses registered on the BBX platform gain exclusive access to Digital Trade Credits (DTC) for their trade transactions (buying and selling products and services) on this platform. BBX DTCs are globally recognized as a valid alternative to cash, and BBX acts as a third-party trade facilitator and manages transactional records of these DTCs.
You can buy products or sell your services using BBX DTCs and manage your expenses and other overheads too. Since DTC transactions are instantaneous, there are zero chances of incurring bad debts from trading. This helps save unnecessary expenses and enhances cash reserves that you can utilize for your daily core business operations.
Members can also avail of the interest-free line of credit in the form of BBX DTCs when they first create an account on BBX. This allows instant access to funds, a lack of which can be a critical concern for small businesses.
As a globally thriving business community, the BBX platform provides essential services and support that every small business needs for sustenance. But very importantly, it offers access to intelligent cash flow management strategies that significantly increase your savings and boost your revenue. As per member reports, BBX can help you attain up to 90 percent cash savings.
Isn't it time to make a move?
