This is a question that both businesses and individuals need to answer. Some people I’ve run across focus on creating tons of cash that comes in and almost ignore how much they spend. Others focus on where they spend money and don’t focus on how to create more money in the first place.
Here’s a news flash for you. You need cash to run your business. If you agree with that really stupid statement, then why don’t you know how to read your cash flow statement? OK, well it won’t be all of you…..a few of you will know how to read it.
I’m amazed at the number of business owners who think the only statement they have to pay attention to is their profit and loss statement. I’m hoping that you’re not one of them.
The worst thing that can ever happen in your business is to run out of cash. Without cash you can’t play the game anymore. Your suppliers won’t ship, your employees will quit and your competitors will circle like the vultures they are.
You won’t sleep and your life will become miserable. Unfortunately, there are times in your business life where you’re going to be short on cash. It seems to be part of the deal.
In the days I owned my vending company cash controls were a big deal. It was almost like a game. Some of our employees would find a way to steal and we would find a way to stop them from stealing. It went round and round and the game seemingly never ended.