I’ve been on both sides of the world as it relates to excess cash. There have been times I’ve had some and times where I didn’t. Every time I didn’t have excess cash I would be forced into survival mode. When I had excess cash there was the ability to act strategically.
When you don’t have excess cash you live in the world of urgent and important. It seems that when you don’t have excess cash you are always doing things that are both urgent and important. If you don’t take action now about creating cash then there is the chance you will run out.
Business owners who are in that position don’t have the luxury of thinking strategically. They are only able to think about who they should pay and who they can hold off for a while.
Every customer feels like the last customer in the world. We tend to take customers on that we know don’t fit. This will often cause problems later on but at the same time we have a cash flow crisis and need every dollar we can get.
When you have excess cash you have choices. If you have excess cash you have choices in how you run your business. You can afford to say no to that customer that doesn’t fit. You can afford to negotiate better terms with your suppliers.
Most importantly, you can spend time thinking and acting strategically in your business and you have the cash to fund strategic initiatives.
Having time and cash to act strategically allows you to build true enterprise value in your company. Without both you are just trying to keep your head above water.
Why I stopped working with businesses that don’t have excess cash. When a business owner approaches me that doesn’t have excess cash I know they are hoping for a miracle. Getting that miracle often requires significant behavioral change by the owner of the company.
I’ve learned that those who don’t have excess cash usually don’t have basic controls in their company and don’t understand what they need to change to make their company successful.
Change is hard. Making changes when you don’t have excess cash is doubly hard. You are often working from a space of being scared and scarcity. Your belief could be that you will go out of business if you do something differently. The sad thing is if you don’t do something differently you will have a good chance of going out of business.
I’ve written a special report on Understanding The Stage Of Your Business. This report will help you understand what stage your business is in and what actions you should take to improve your life and business. I encourage you to click on the button below, which will bring you to our sign-up page for this special report. I believe you’ll find the report useful.