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Over the years, we have spoken with countless entrepreneurs who are convinced they have everything they need to succeed. They have a strong idea, a great product, and a real demand in the market. They are motivated, confident, and eager to begin.
And still, many of them come to us after realizing something unexpected. Their biggest challenge is not the idea, not the service, and not the quality of their work. It is cash management. It is understanding cash flow, or the way money moves in and out of the business.
The reality is harsh but simple. More than 80 percent of businesses fail because of poor cash management. Not because the business is bad. Not because the product does not work. But because the entrepreneur never understood how cash truly flows.
This is one of the first lessons we help our clients understand when we build our business plan.
The Timing of Money Is Everything
When we begin analyzing a new business, we do something that surprises many entrepreneurs. We study the timing of their cash. We look closely at when money enters and when it leaves.
Most people have never done this before. Some have never even heard of it. They assume that as long as sales are strong, the rest will take care of itself. But the truth is that a business can be profitable on paper and still run out of cash in real life.
This is why cash flow analysis is a critical part of our business plan. It reveals what is really happening behind the scenes.
When Clients Pay Upfront: The Ideal Scenario
We have worked with entrepreneurs in many industries, including manufacturing businesses that require payment in advance. In these cases, the client pays upfront, which gives the business the cash needed to manufacture the product.
Once the product is delivered, the business collects the remaining balance. This model is efficient because the business uses the customer’s funds to cover the cost of production, leaving less financial pressure on the entrepreneur.
This is the kind of system most entrepreneurs dream of. But it is not always the reality.
When Clients Pay in 90 Days: A Very Different Story
We have also created our business plan for clients who must wait 60 or 90 days to receive payment. On the surface, everything looks positive. The product is selling. The demand is there. The margins are good.
But when we start analyzing the cash flow, it becomes clear that this payment structure changes everything.
A business that must wait 90 days for payment needs significantly more cash in the bank to operate. It needs more money to produce goods, hire staff, run marketing, and cover fixed costs while waiting for invoices to be paid.
Without this analysis, the entrepreneur may believe they have enough money to start, when in reality, they are far from it.
This is exactly what our business plan uncovers. In several cases, clients have discovered that they needed far more funding than they originally thought in order to keep the business running long enough to collect payments.
If they had launched without this understanding, they would have run out of cash quickly.
The Real Purpose of Our Business Plan
Our business plan is not a presentation or a generic document. It is a tool that forces the entrepreneur to see how their business truly operates.
Cash flow is not intuitive. Most entrepreneurs do not have the training or experience to map out the timing of money. They focus on sales and profit, but overlook liquidity. They assume that revenue equals available cash. It does not.
Our business plan gives them clarity. It shows how much cash they actually need. It reveals gaps they never saw. It prevents surprises that could shut down the business before it has a chance to grow.
Most importantly, it helps entrepreneurs understand what it will take to operate smoothly in real life, not just on paper.
Why This Analysis Matters
Launching a business without this level of cash flow analysis is like starting a trip without checking the fuel. The business may be great. The idea may be strong. The future may be promising.
But if the cash runs out, none of it survives.
Our data-driven business plan makes sure entrepreneurs do not face that problem. It shows them exactly how much money they need, how long it needs to last, and what it will take to stay operational through the ups and downs of the first months.
That clarity can be the difference between a business that struggles and a business that scales.
Contact us today to get started
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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