Cash flow problems? – the myth uncovered.

Cash - The Myth Exposed!

Lets start with the assumption. You actually believe you have a cash flow problem.  You even have a balance sheet to prove it.  Your CPA confirms the fact that you are running out of operating cash and according to projections  will be out of business in 60 days.

Sound familiar?  Well for this consultant it is all too familiar.  Many of today’s business concerns are in that exact position and due to false beliefs may face bankruptcy.  The issue is never a cash flow problem, it is always a management problem.  This may seem a bit harsh and even a strong pill to swallow.  It is however the first step to real help.

You must as an entrepreneur face the giant and deal directly with the issues that effect cash.  Cash has no concerns, it really does not care where it is stays. Lack of cash flow is a symptom of greater problems.   It is the avoidance and refusal to deal with the real issues that  may  ultimately bring to an end a once thriving concern.

Let me simplify, CASH goes in the direction of solutions.  When you solve the right problems you get paid, when you dont, you wont for long.

There is a sales person who has an entitlement attitude and wants the employer to know just how special and wonderful he is.  He focuses his time on making a case to the employer of just how valuable that he is and all he brings to the table.  This self justification is an annoyance to the owner and after watching this star beat on his chest one too many times, he gets fired.

The news of this decision is heard throughout the community, and one by one skilled sales professionals start showing up to do the work that was left on the table by the chest beater.

The company goes from insolvent to saturated. No, it sure wasn’t a cash flow problem…

3 Responses to “Cash flow problems? – the myth uncovered.”
  1. nelson says:

    Good artcile William.
    It is always a management, or lack of , that creeps in and clogs the cash flow. Individuals and companies usually dont have a budget, a plan, and that is the cause of the cash flow. Once there is a plan, a budget, the clog is removed and the focus begins to enable funds to be “told” where to go instead of the client saying “where did it go”.

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