We talked about profits above, how about cash? It’s been said that “No one ever paid a bill with profits.” Profit is an accounting concept; cash is a reality. Too often executives focus on the income statement and not the cash flow statement.
In the third and final installment of Vistage member and M&A advisor Mark Taffet’s 3 part series “Run it like a turnaround (before you have to)- Part 3: Managing Cash Flow he focuses on an issue that kills not only businesses with declining revenue but rapidly growing companies who can have so much invested in working capital and other needs that they can choke on their own success.
Check out the earlier installments of Mr. Taffet’s series for more great advice:
Part 1: Generating Profits
Part 2: Expansion and acquisition
