Stage Shows and Cash Flows

May 28, 2012

What do stage shows and cash flow have in common?  Let me tell you.  Just before the curtain goes up, the director assembles the cast and crew on stage and delivers this message to them: "Make it live.  Make it grow.  Make it a new experience".

These words had a profound impact on my cash management philosophy, "Make it happen".

So how do you make it happen?  You do it by good management decisions.  And the key tool you use to make these decisions are the cash projections which tell you where you are going.

You then compare where you are going with where you want to go, and make necessary adjustments to get there.  You "make it happen".

It is not an accident that you end up where you want to be.  It is deliberate actions driven by cash projections.  And 2 important benefits to the business owner are reduced stress and increased value.

Most businesses do not realize how simple it is to make these cash flow projections.  For this reason, these projections do not get done. 

As a result, the stress level of the business owner goes up since they are uncertain where the business is, and the value of the business is not at the level it should be.

The solution is to "make it happen" with cash flow projections.

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