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A new business may run short of cash during its first year due to several factors, including underestimating startup costs and operating expenses, which can lead to insufficient initial funding. Slow sales growth and unexpected delays in revenue generation can further exacerbate cash flow issues. Additionally, poor financial management, such as ineffective budgeting or lack of tracking cash flow, can compound these challenges, resulting in a cash shortfall. Finally, external factors like economic downturns or increased competition can also impact sales and liquidity.

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1w ago

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