mr alex on...
Cash Flow, Cash Flow, Cash Flow!
Progress NOT Motion
The first and last rule in any business is sound cash management. Indeed, if you organise your business correctly, it should take care of itself and take little of your time. Almost every business that goes bust does so because it ran out of cash. Your main task is to survive as a business, so make sure that your cash flows are sound, current and growing. Cash Flow is the oxygen of any business; don’t surrender it to the ‘can’t pay you right now’, or the ‘cheque's in the post' avoiders! Investors, Bankers and Accountants look at what cash is coming into your business - and how consistently it flows in. They consider strong Cash Flow as real progress.
Once you provide a fabulous service or great product, that money belongs in your business, not to them. So, lead as such. Don’t let your sales team oversee customer credit – you might not last very long! Avoid sticky fingers that rob the business till – the money belongs to the business, not you! For each pound, dollar or euro you take, remember some of it also belongs to your suppliers, tax authorities, employees, accountants and many other expenses.
A leader of a healthy business needs cash to survive and then prosper- treat business health like your own – look after the cash and the business will look after you.