Leaking

If you never learn anything else from starting a business, know this:  leaking money will kill you.  The easy dollar today costs you 2 dollars tomorrow.  From the high cost of “cash” (2% – 14% APR) to the cost of letting good customers have an extra week to pay an invoice, you HAVE to manage your cash like every penny of it is due TODAY.

One of my best customers is having cash flow issues and I am trying to work with them.  But their issues – which have nothing to do with me – are now creating cash flow issues for my business.  My ability to pay employees, pay A/P, order more products, etc. is directly affected by their ability to pay me what is owed.  I did my part in delivering their products; now they need to do their part in paying for them.

Don’t lose sight of the fact that every dollar wasted is not only a dollar that should be in your pocket, but also (more importantly) a dollar you could be using to further your business.

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