There are a few reasons why small businesses struggle with cash flow. Narrow margins, for example, are an issue for small businesses without a cash reserve to cover costs.
Other reasons that small businesses face cash flow problems include: Relying on a small customer base. Not knowing how to manage customers who miss invoice deadlines. Ordering too much inventory and reducing financial liquidity. Overestimating predicted income. Not reacting to seasonal fluctuations and economic changes, like inflation. If your small business is struggling with cash flow, consider speaking to a financial advisor or accountant for professional guidance.