AVI Business Solutions

Your sales look great. The order pipeline is full. You hired two people this quarter. And yet you’re still staring at payroll like it’s a cliff you have to jump every other Friday. That’s the messy truth about cash flow. It’s not “are we making money,” it’s “do we have money in the bank when bills hit.” Timing matters more than most owners expect, especially during a growth spurt. If you’ve ever felt confused by the gap between “we’re profitable” and “we’re broke,” you’re not alone. Most cash flow problems in growing companies come from three sources: timing gaps, hidden growth costs, and a few fixable habits that aren’t set early enough. Growth creates cash gaps that profits do not show Profit is a scorecard. Cash is oxygen. A growing business can show a paper profit and still run out of money in practice because cash flows on a schedule you don’t control. Here’s a simple example. You land a $50,000 project and invoice the client with net 60 terms. Great win. But you have to pay $12,0...

After years of economic whiplash, supply chain disruptions, rising interest rates, and unpredictable consumer demand, a clear shift is underway in the small- and mid-sized business landscape. Growth at any cost is no longer the goal. Profitability, resilience, and disciplined execution have taken center stage. Business owners are learning a hard truth. Revenue growth without margin control is not success; it is a risk. The End of Growth for Growth’s Sake For more than a decade, low interest rates rewarded aggressive expansion. Hiring ahead of demand, overstocking inventory, and scaling operations quickly were common strategies. When capital was cheap, inefficiencies were easy to hide. That era is over. Today’s environment punishes businesses that grow without discipline. Inflation, higher borrowing costs, and tighter underwriting standards mean that every dollar must work harder. Lenders and investors are no longer impressed by top-line growth alone; they want proof of sustainable prof...

  Cash flow is essential for any business; even the most promising ventures can fail  without it .   A study by U.S. Bank reveals that an alarming 82% of business failures are due to insufficient cash flow. This statistic highlights the urgent need for effective cash flow management among entrepreneurs and small business owners. This article will explore why cash flow issues can be so detrimental, the common pitfalls that contribute to them, and practical strategies to help your business succeed. Understanding the Cash Flow Problem    Cash flow refers to the money that moves in and out of a business. Positive cash flow occurs when a company has more money coming in than going out, allowing it to cover its expenses, invest in growth, and handle unexpected challenges. On the other hand, negative cash flow—when outflows exceed inflows—can quickly lead to a crisis. A study by U.S. Bank highlights that poor cash flow management is not just a minor issue; it is the l...