Why is Working Capital Management Important for Entrepreneurs?
For entrepreneurs, managing working capital is crucial for several reasons:
Liquidity: Proper working capital management ensures that a business has enough cash flow to meet its daily operational needs. Financial Health: It helps in maintaining a balance between profitability and liquidity, which is vital for the financial health of the business. Growth Opportunities: Adequate working capital allows entrepreneurs to capitalize on growth opportunities without facing financial constraints. Supplier Relationships: Timely payments to suppliers can strengthen business relationships and may lead to better credit terms.