Cash always is the key element in running a business
There is a cycle for every work project: Getting the work (sales); doing the work (production – operation); and finance (getting paid). Cash, being the grease that makes this wheel turn, has to be considered at every stage. In the selling process, what will be the terms of your agreement? Most lawyers forget about this and merely focus on getting the client. If the client fails to pay on time, most lawyers let the client slide, forgetting that the agreement is a two-way street.
Cash is also important in the production cycle. Paying staff – they can’t wait, they have families to feed; vendors, however, can be encouraged to wait a bit.
And, of course, in the finance segment, getting paid is what it’s all about!
Then, we start over with a new cycle.Tags: Cash Flow - Finances
Categorized in: Cash Flow - Finances