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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?

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