Written for EO by Jessica Thiefels, social media coach and organic marketing consultant.
You probably know that only 20 percent of all businesses survive past their first year. (And that only half survive more than five years, according to Business Insider.) But did you know that the top reason why those businesses fail is capital? 82 percent experience cash flow problems.
One of the largest challenges with managing cash flow is unexpected expenses. “A big issue is under-capitalization at the outset of starting a business. Business owners frequently underestimate how much money will be needed to fund operations,” Keith Speights, of Motley Fool tells USA Today.