Entrepreneur Plus - Short White
For Subscribers

I Got The Blues One company's experience with the cash-flow blues and how it lived to sell again

By Aliza P. Sherman

Opinions expressed by Entrepreneur contributors are their own.

We've all heard of Murphy's Law: "Anything that cango wrong, will go wrong." But what about the cash-flow law?"No matter how much money you have coming in, it never comesin soon enough to cover your expenses." Chalk this phenomenonup as one of the dirty little secrets of running a business that noone really talks about. Then, suddenly, you're up to your earsin bills with a near-empty bank account, and you don't knowwhere to turn.

My first experience with the cash-flow blues happened in mysecond year of business, once we had a staff, an office, equipmentand the usual overhead of any growing business. My partner pulledme into his office one day and announced, "If we don't geta check in by Friday, we won't make payroll." Not makepayroll? That couldn't be possible! We had a slew of clients, aton of work in production. How could our bank account be sodepleted that we were in jeopardy of not paying our staff?

Continue reading this article — and all of our other premium content with Entrepreneur+

Join the internet’s leading entrepreneur community! With your subscription you’ll get:

  • Access to all of our premium content and an ad-free experience
  • A complimentary subscription to Entrepreneur Magazine
  • Four free e-books a year and 20% off everything from our bookstore
  • Exclusive events with business celebrities and successful entrepreneurs

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

'I'm Not a Very Good Businessman': Kevin Costner Is Risking a Ton of His Own Money on New Project

The "Yellowstone" star discussed how he bankrolled his new epic movies — and his accountant isn't happy.


How AI is Helping Us Break Free From The 9-to-5 Grind

Explore the transformative impact of AI in reshaping work hours and fostering flexibility for a healthier work-life balance.

Business News

'I Am Just Floored': Woman Discovers She Won $1 Million Lottery Prize While Checking Her Email at Work

Initially, she thought the email was a scam, but went to lottery headquarters and walked away with a six-figure check after taxes.

Growing a Business

A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John

Rush Bogin, a 17-year-old fashion designer, learned firsthand how finding market gaps and listening to customer feedback can bring major success.


How to Be an Ally to the LGBTQ+ Community During Pride Month and Beyond

Recent actions from Bud Light and Target have created more polarization on diversity issues in the workplace. Pride Month is a special time to celebrate with the LGBTQ+ community.