Importance of cash

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Cash flow is a measure of how cash moves in and out of a business and it’s important because it shows the financial health of an organisation.

From an operations perspective, it can help you judge if you are able to cover operating costs and make necessary investments. And whereas positive cash flow means the company does not have to go into debt to cover its bills, negative cash flow indicates that the company needs to borrow money or take other measures in order to pay its bills.

Cash flow is simply calculated by subtracting total expenses from total revenue, or money earned over a certain period

Having an understanding of your cash flow is also beneficial for budgeting purposes. Knowing how much cash you have available and when it will arrive helps managers plan for upcoming expenses and ensure enough funds are available at all times. Furthermore, being able to predict your monthly income and expenses can help companies identify financial trends and adjust their strategies accordingly. Finally, a good understanding of cash flow allows investors to determine whether they want to invest in the company or not. By evaluating past performance and predicting future trends, investors can decide if a company’s finances are stable or risky.

How cash flow affects company valuations

Cash flow is one of the most important factors when it comes to determining a company’s value. It provides an insight into a company’s financial health, providing investors with an understanding of how well the company is doing in terms of its ability to generate revenue and profits. Cash flow can be divided into two categories: operating activities and financing activities. Operating activities include things such as net sales, cost of goods sold, dividends paid, etc., while financing activities include debt repayment, equity investments, and other capital transactions.

The level of cash flow generated by a company’s operations will shape its valuation. If the company is generating positive cash flow, then it may be seen as more attractive to potential investors. On the other hand, if a company’s operations are resulting in negative cash flow, then it may be viewed as a risky investment opportunity.

The importance of cash flow to businesses cannot be overstated. Cash flow is the lifeblood of a business, and being able to manage it effectively is essential for any company’s success. Cash flow directly impacts a company’s ability to pay expenses and bills, and having healthy cash flow can even increase a company’s overall financial standing. Poor cash management often results in higher debt levels, which can have a negative impact on the value of a company. Ultimately, effective management and understanding of cash flow is critical for businesses to maximise their valuation potential and remain successful in the long-term.

About Bluestones

Bluestones Investment Group invests in staffing service companies. We operate a balanced portfolio of businesses in specific divisional sectors and are always keen to receive investment enquiries.

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What you need to know

Although our existing brand portfolio operates across five core sectors, we’re not restricting future investments to just those. If you have a good proposition and a believable plan, that’s half the battle – so talk to us today about how we can help.

We’ve refined our start-up process so that we can typically launch a new recruitment business, fully set up with all the necessary branding, systems, and accounts, within a matter of weeks. 

Firstly, we need you to submit your investment enquiry. You can do that HERE.


As long as there’s sufficient detail in there, our Investment Director will review your proposal. All investments submitted will receive personal feedback.


After that, if your investment meets our criteria, our Group CEO and CFO will review and sign off on the investment and we’ll get heads of terms and shareholder agreements drawn up. As an equity stakeholder in your new business, it’s important we get this all agreed up front.

Our investment criteria is fairly simple; we’re looking for the following:


  1. A realistic budget.
  2. Demonstrable knowledge in your location(s) and sector(s).
  3. Proven sales growth and track record.
  4. A structured plan for your new business.
  5. A vision for how you want to develop your business.

We expect you to have at least 3-5 years’ experience in your chosen sector. We need to have confidence that you understand your market and have a well-developed network of clients and candidates.

We offer one of the best all-round investment and support packages available for recruiters and recruitment businesses. From providing all of the upfront funding, guaranteeing salaries, providing office premises, full provision of IT equipment and services, and all the support services you need, including IT, legal, HR, Finance, etc.

We’re focusing on recruitment businesses within the UK right now and already have established recruitment hubs in Birmingham, Chester, Leeds, Liverpool and Manchester – with other offices around the country. 


As long as you’re based in the UK, you can trade wherever, and we can support you.

We invest in businesses that we believe can be successful. That means a business that can scale and grow at pace, that is typically break-even in year one of our investment, and ready to exit in year three, or preferably join our core recruitment business portfolio for further growth, increased value, and wealth creation. 

Speak to me about your investment

Matt Cody

Investment Division CEO

“We have a proven approach to investing in the recruitment sector, scaling businesses rapidly, and creating value. Let's talk."

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