The most effective business killer of both start-up and well-established businesses is running out of money.

Here I'm going to discuss some ideas on how to manage cash-flow in the best possible way.

Late payments have a tremendous effect on cash-flow: to understand this effect look at the chart proposed by Vito Mazza.

If your client is delinquent on 10.000,00 Euro and your business generates a 5% net profit, you need to acquire and perform additional 200.000,00 Euro sales to compensate this credit.

The impact of the blockade imposed on projects caused by the COVID-19 and the foreseeable repetition of similar situations in the future suggests to review and integrate some contractual clauses to better balance the risks between client and contractor.

The "Force Majeure" clause provides for an excusable delay, but does not allow the recovery of additional costs (non-excusable cost).

This clause should be extended to include cases of contamination by nuclear events, by viruses and bacteria, and by chemical and radioactive agents (NBCR).

Social trust

A social organism of any sort whatever, large or small, is what it is because of each member proceeds to his own duty with a trust that the other members will simultaneously do theirs. Wherever a desired result is achieved by the co-operation of many independent persons, its existence as a fact is a pure consequence of the precursive faith in one another of those immediately concerned. A government, an army, a commercial system, a ship, a college, an athletic team, all exist on this condition, without which not only is nothing achieved, but nothing is even attempted…