PS. Cash is King!
In his time, my dad was a business genius!*
This ‘Pops Says’ (PS.) feature is dedicated to him and the little nuggets of wisdom he will regularly impart, to remind me that success is easier to master than people will have me or themselves believe!
Pops Says: Cash Is King!
The most important thing for a small business is managing the cash flow.
Forget about profit and loss – it can be manipulated! Cash in the bank can’t!
Focusing on customers, great products, great service, appropriate cost base, of course, should not be taken for granted. But if you aren’t supplying these, then you won’t have a business anyway.
But even if you have all of these important items, you have to finance your business.
- So make sure you never give customers an excuse not to pay
- Agree payments terms with customers, and make sure they stick to them
- Never be afraid to ask for what is owed to you
- Keep your bank informed of any exceptional issues – they don’t like surprises!
- Monitor your bank account on a daily basis, so you always know where you stand
- Practice what you preach by paying on time also – your suppliers will respect you for it and word gets around
So remember, for a small business (and come to think of it, for a large business too!) – CASH IS KING!
*He worked his way to the top (and started at the very bottom!), he established himself as one of the most successful businessmen of his time, running multi-billion dollar organisations and bought and sold companies the world over – yet he’s one of the most unassuming, humble and genuinely sincere people you’ll ever meet. I love him – not just as a dad, but as a master in how to keep it simple and make it successful!