Your company’s cashflow can either make or break you. It is very important to understand the difference between cashflow and your net income or profit and loss. Some people treat them as the same thing, and that can get you into a lot of trouble. In this episode we’ll try to bring some clarity to the subject to help you avoid some of the more common missteps people take when it comes to managing cashflow.
What To Expect From Episode 85
Managing your cashflow is one of the more important topics trucking company owners need to understand well. It’s an important subject for any business owner, but incredibly important for trucking companies because it’s a very cash intensive business and margins are thinner than they are in many other businesses. We start off the episode by explaining the difference between cashflow and net income.
We spend most of the rest of the episode talking about the following times in a trucking company’s life cycle when cashflow tends to be a challenge:
- At startup
- When you are growing
- When you stop factoring
- When freight rates decrease
- When fuel prices increase, but rates don’t