Business Cardiac Arrest is a sudden and critical state of financial distress where a company can no longer meet its financial obligations, often leading to imminent closure.

Primary Implication

If you experience shortness of breath, lightheadedness, dizziness, and fatigue running your business, you have problems. Anytime you experience pain, discomfort, pressure, or tightness in the center of the chest because of cash issues, you are in serious trouble.

Protect your business from suffering the pains of sudden cardiac arrest that leads to loss of cash, no discernable profits, and a sudden business collapse by learning BusinessCPR™ a five-step management system for consistently improving the relationship between cash flow, profits, and reporting for sustained business health.

Overview

When cash outflows exceed cash inflows, you are in business cardiac arrest, because you are out of cash to fund your operations. The five most significant complications from cash outflows exceeding cash inflows are listed below:

1. The owner is continually seeking cash versus controlling cash and, as a result, has no cash reliably on hand.
2. A/R aging is more heavily weighted on the greater-than-sixty-days past due than on current receivables.
3. Calls from vendors looking for their money inevitably increase in frequency and hostility.
4. The business begins “borrowing from Peter to pay Paul” and, as a result, has zero cash reserves. Every dollar coming in is going out to pay others, usually the same day.
5. The owner sees an increasing amount paid in NSF bank fees because they fail to understand how to manage their business through accurate and timely management reporting.

The keys to protecting your business from suffering the effects of business cardiac arrest start and end with avoiding failures in cash management, profit generation, and basic management reporting.