Stripped of all the rhetoric of big plans, fancy financing schemes,
and grandiose marketing ideas, the task of every business owner is
very basic. Either build and maintain a positive cash flow or close
the doors! Although this point may be obvious to many, every
year thousands of businesses officially file bankruptcy — and many
more simply close their doors without formally filing.
Countless others continue to operate, but do so “on the edge,”
wondering if they’ll be around next year. It’s a fact that many new
business start-ups do not celebrate their fifth birthday. Peter
Drucker, business expert & author of 30 business books, contends,
“Any start-up business that doesn’t have a positive cash flow in 18
months is a phony business.”
What separates the “men” from the “boys” in the business world is
management. And the greatest difference in management is not in
brains, but in the ability to see what really matters. Push comes to
shove when the daily on-going expenses are higher than planned, and
the sales or collectibles are less than anticipated.
Under those circumstances, how can your company most efficiently
increase its cash flow? Those in the know understand that it’s done
by decreasing cash expenditures. That’s why working through a trade
exchange makes sense.
By substituting cash buys with trade purchases, you save your
company valuable cash. Which then can be placed in reserve to give
you that needed cushion to get you over any unforeseen emergencies,
provide you with greater security and peace of mind, be available
for expansion needs, or make a great buy.
In short, focus on what really matters. Begin today building your
cash flow!
