Fundamentals of Small Business Financial Management for Start Up, Survival, Growth, and Changing Economic Circumstances

In the life of a business, the lack of adequate liquidity to meet current obligations when they come due frequently results in problems which, more often than desirable, result in the failure of the enterprise. A common cause of such small business failures at various stages in the business's life cycle is poor financial planning. One planning deficiency which results in early failure is under capitalization. Under capitalization results from several errors made during the initial stages of financial planning and implementation. Cash flow problems are a common symptom among businesses with this problem.