In all these situations, your cash flow is making it possible for your business to spend money to make money. The resultant increase in revenue is further justifying the expense. This is what doing excellent business is all about. It is the formula that must be in place in order to ensure true business growth takes place.

1. Why Cash Flow Can Proactively Grow
Your Business
Until your business starts to generate a healthy positive cash flow, your business will continue to
operate at a loss. This state of business affairs is a shaky time in any upstart’s humble
beginnings. Once your business’s negative cash flow takes a hard 180-degree turn for the better,
this will place your business in the position to take many steps forward with the development of
a comprehensive growth strategy. This all sounds nice on paper, but making it work is the real
magic. Here are a few examples of how positive cash flow will make it possible for your
business to grow.

2. Positive Cash Flow Means the Potential for Better Employees
One way to ensure a company will grow by leaps and bounds is to produce enough of an initial
positive cash flow to be able to afford putting the right people in key positions. With the right
leaders and subordinates in place, your business will have a team of dedicated employees that
know their job and do it well. Optimal performance may cost a little more initially, but it really
makes the difference when you hire the right people to help propel your business to that next
level. When this strategy works, it tends to produce an even greater cash flow state. This in turn
justifies hiring better quality employees whose experience pays your company back many times
over for every dollar spent in employment wages.
Paying for Expert Consultants
If you want to really boost your company’s revenue, then working with expert consultants that
have a track record of producing solid, tangible results is the way to go. Positive cash flow
makes it possible for your business to pay experienced industry leaders to help guide your
company down the best possible path of success. A consulting expert is like having a coach who
is completely familiar with what your business needs to do to get where you want it to be. In
addition, a consultant will help to take years off the learning curve for your niche industry. This
will in turn save you tons of money by not needing to reinvent the wheel every time you want to
make the slightest advance in your industry.
Access to More Products and Supplies
The worse situation your business could possibly be in is one where demand is high, but you are
unable to afford the supplies to meet that demand. Nothing hurts a business like watching lost

3. opportunity play out right before your eyes. With a healthy positive cash flow, your business will
be able to stock its products and purchase any necessary supplies it rapidly needs in a timely
fashion. This leverage helps to make it possible to better satisfy the demand inherent in the
marketplace for your particular company’s niche. When you have the cash flow to justify
ramping up logistics to the point where you can get what you need on demand, the end result is
that you never have to miss another high demand opportunity in the marketplace again.
Conclusion
In all these situations, your cash flow is making it possible for your business to spend money to
make money. The resultant increase in revenue is further justifying the expense. This is what
doing excellent business is all about. It is the formula that must be in place in order to ensure true
business growth takes place.
Jeff Ramson is an Investor Relations Expert with over 25 years of Wall Street experience.