Business Acumen: Five Things Can Do to Improve Cash
September 22, 2012
What do they say about cash? Cash is King! Cash is a company's oxygen supply, and our favorite from Al Shugart, Cash is more important than your mother. While we're sure Al loves his mother, he's making the point of how important cash is to a business. In fact, the number one reason start-ups fail is they underestimate how much cash they'll need.
Cash is important to big business too. Take Ford and GM… prior to the recent economic crisis Ford went out and borrowed $23 billion dollars and set it aside. People thought they were crazy (they even mortgaged their iconic blue oval logo), but when hard times hit Ford had enough cash on hand to weather the downturn. GM on the other hand borrowed billions from US taxpayers, President Obama fired their CEO, and they declared bankruptcy because they didn't have a strong enough cash position to continue their operations. In short…
The only unforgivable sin in business, is to run out of cash.
— Harold Geneen