First Things First… Ensuring Liquidity

After God’s grace and providence, an entrepreneur’s most important asset may be liquidity (i.e. enough cash to operate through the upcoming period).When firms run out of cash, it’s “game over”! So, how can you stay on top of this key issue? First, maintain a forward-looking projection of net cash position by detailing major sources and uses of cash on a rolling basis (e.g., 6-12...

Righting the Ship to Ensure Operational Fitness

So what can you do, especially in a soft economy, if you find yourself with lots of cash tied up in operating capital to run the business? First, get serious about tracking each sub-category and assign responsibility to gatekeepers with goals to enhance performance by improving the number of ‘days’ of each type of operating capital. • Meet face-to-face to resolve issues with major slow...