If you listen to the news reports Australia survived the economic crisis relatively unscathed, but behind the news, companies are still failing and this February will be a vital test of our economic optimism

The number one reason why companies fail is cash. Don’t be deceived by the simplicity of this problem – some of the mightiest companies have simply run out of cash or their rate of growth has outpaced their capacity (or their banker’s willingness) to fund the additional investment.

The balance between growth and cash flow is always a delicate one. All it takes is for a few major customers to either slow down or stop paying you and your cash flow is suddenly compromised.