Most companies experience losses and negative cash flows during their start-up period. Financial management is extremely important during this time. Managers must make sure that they have enough cash on hand to pay employees and suppliers even though theg have more money going out than coming in during the early months of the business. This means the owner must make financial projections of these negative cash flows so he has some idea how much capital will be needed to fund the business until it becomes profitable.
Resource management is the process of pre-planning, scheduling, and allocating your resources to maximize efficiency.
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