cash flow for startups

• Why might small / start up businesses have cash flow problems?

  May be a while till the business makes first sales

  Suppliers may demand early payment from the start up

  A new business has to spend on expense such as marketing and product development
• Why is cash flow forecasting important for a start-up?

  Identify potential shortfalls in cash balances in advance

  To predict what is going to happen to the cash flow