The Optimism Trap: Why Entrepreneurs Overestimate Cash Flow

Whenever someone starts or buys a business, one of the most common mistakes seen is overestimating cash flow. Why? Because business owners are, by nature, optimistic. You have to be. No one starts a business expecting to fail. But that same optimism can lead to unrealistic projections and overlooked risks. It’s not about being pessimistic—it’s about being prepared.

Krilogy Financial, LLC (Krilogy) is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor. Registration with the SEC should not be considered an express or implied approval of Krilogy by the SEC. Krilogy does not provide tax and legal advice. All expressions of opinion are subject to change. This information is distributed for educational purposes only, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investments involve risk and unless otherwise stated, are not guaranteed. Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategies discussed herein.

The Optimism Trap: Why Entrepreneurs Overestimate Cash Flow

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