Austin Business Owners: Cash is Still the King

Reading “The Road to Less Stupid” by Keith J. Cunningham, Author, keynote speaker and life time business leader. Keith and Sandra have lived in Austin for 50 years. Currently they are in Cabo enjoying ocean breeze, warm vs. hot weather and playing golf daily. I spoke with Keith yesterday about our current crisis and troubling times. Here’s an brief view that Keith suggests what many of us need to focus on today, this month.

The Trick is keeping your money when the tide is going out.

Cunningham suggests start using a Rolling 13-Week Cash Forecast. This one tool is possibly the most important one you can master to maximize the likelihood of survival. If you need more info on a Rolling 13-Week Cash Forecast and how to prepare one, visit Keith’s website: KeystotheVault.com/Crisis-Management. It’s available free of charge and can be downloaded immediately from his recent article, “Business Oxygen”.

Work out a detailed specific plan on expenses considering your current cash balances, cash flow, and realistic anticipated revenue. The goal is to make the decisions to get to cash neutral as quickly as possible. While there are always a few exceptions to every rule, during a crisis, a business’ goal is not wealth creation, but rather loss avoidance. The few businesses that are able to pursue wealth creation strategies in this crisis are businesses that have an abundance of cash and cash flow.

Keith’s bumper sticker: Not all progress is measured by ground gained. Sometimes progress is measured by losses avoided. We are in a “losses avoided” climate and that means breakeven and cash neutral are gold medals.

Red Scott, CEO of Vistage Florida who passed away several years ago shared “Cash ain’t cash, unless it’s cash”.  Print Red Scott’s Cardinal Rules and tape it to your wall. So now go take on your day.

Ed

Published by edstillman

I grew up in Carlsbad, north San Diego County, lost my dad as a teenager, went into the USAF for four years and hired on with 3M in 1969. Received my AA from Santa Barbara City College, BA and Masters from Redlands University and after 33 plus years, I retired from 3M in 2002. As I look back on my life, I have been creating myself and developing my skill sets to be a business coach and a Vistage Chair. I am president of SEOT, a "personal improvement" consulting firm spending most of my time working with Central Texas executives running small to medium size for-profit companies who are focusing on improving their profitability greater than their competition. My area of interest is assisting senior executives in creating a better balance between business commitments and personal relationships. I also facilatate three leadership labs each consisting of a dozen owners, presidents and CEOs. We meet monthly both in a group setting as well as in a 1-to-1 coaching session. Our focus is to sharpen each others' skills in becoming better leaders, making better decisions and taking ourselves and companies to that next level. Who are we? My members are experienced top executives who recognize that they don’t have all the answers and who actively seek the company of successful peers—both to give and receive insights and ideas. My members mine the 200 plus years of chief executive experience that comes together in our monthly meetings and members are eager to offer their own experience and insights in the process. As a group, we spend our time exploring topics members can't discuss anywhere else. My members have many other places where they can engage in idle, "cocktail party" chatter. Our mission is to provide the setting for discussing the "undiscussable." Where or who can you go to for confidential, honest feedback to assist you in minimizing your personal "Worry List"?