10 Little Known Facts New Business Owners Should Know

**The-J** · May 30th, 2012, 12:00 PM

10 Little Known Facts New Business Owners Should Know

Sorry, Rickson9, I beat you to this one. But I felt that it needed to be shared.

(From Under30CEO.com)

**JamItFast** · May 30th, 2012, 01:27 PM

Can someone please explain the following quote? How do we cash-flow without sales?

“Sales are Secondary”

Sales do not equal cash flow. When you have a limited amount of capital, cash flow is what you need to survive.

**Likwid24** · May 30th, 2012, 01:30 PM

Good article. Looks like they have a bunch if good info in that site. Definitely worth a bookmark. And that one quote confused me too. How do you get cash flow without sales???

**PatrickP** · May 30th, 2012, 01:46 PM

I think they mean if you extend credit or give companies 30 days to pay you could find you run out of money and can't buy more product.

So even though you have 40K in sales it takes you 7 days to get the products to the company and they take 30 days more to pay you.

I learned this lesson just a few months ago. Fortunately did not run out of money but was surprised by how fast it can come on.

**The-J** · May 30th, 2012, 01:57 PM

I'm unsure, but I think what the person meant by that is to not focus on increasing sales volume first but instead focus on making sure your current revenue model is sustainable first. Once you've got that down, then you can focus on increasing sales volume.

Hopefully someone with a little bit more experience will clarify.