Several months ago I got word from one of my customers that she had downsized, reorganized and simplified her business by cutting out the fat. Her husband acted as the moving company and now she needed her network and phones back up and running at her new office location.Her business model serves the state of Maryland businesses and consumers, and yet each month her cash-on-hand was to meet payroll and expenses; while getting the satisfaction that she could pay all the bills, only not much was left over. Her immediate needs were met and we engaged in a couple of hours discussing cash, cash flow, needs vs. what people think they need to run a successful business. Several times I told her and gave her some working examples to drive home the point that cash is king.
In some of my "green" posts I've alluded to my belief that consumerism has changed and the past is not sustainable. But my theories aren't hinged on "greening" or some sort of environmental movement such as Greenpeace who recently desecrated our national monument. Instead, there's an ancient concept known as stewardship and there's also another concept known as Pay the Piper. We've all witnessed firsthand mismanagement of government past and present, corporate thievery that rivals the medieval German lords known as Robber Barons and an unquenchable thirst for getting satisfaction today and paying over and over for having that right-now gratification. There remain mixed beliefs about economic recovery--whether it's localism, nationalism or global viewpoints I think it's safe to say that business won't be as usual.
Businesses and employees that lose the knack of running lean while remaining well lubricated come to understand elements of surviving. My customer's example could prove some basic points and that's just it--they were basics. If you don't have the basics down or refuse to honor them then you will fail. Her employees have moved on in life and she continues rebuilding her business with part-time help and 1 FTE--herself. It's easy to place blame on the boss, business owner, CEO or circumstance but it's another to offer solutions hinged on stewardship before it's too late.
My customer called and wanted to thank me for our talk and told me that things are going great and that she's holding close that "Cash-is-King." She sees a different model in the making and growth that is managed instead of forecast. She also bought out the franchise from her former partner. The sticking point that she left me with, as have other business owners and executives that I speak with, is that too often employees and even business owners themselves admit that they didn't see or missed the concept that perpetual borrowing and spending doesn't sustain the bottom line. People lose sight of the organization and how to spend or act as stewards for the company instead of themselves, agendas or anything else that distracts the company. The opportunities to use new and old ideas I think do exist for small and large businesses or individuals to think in these terms for their advantage. The reality remains that cash-is-king and if you don't have it you won't like the alternatives, especially knowing that the bread lines won't last forever.
