Cash is king - your greatest mistake is to run out of cash

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 21 2019

Despite all the trash that cash or money  is getting from the Holier than Thou Groups, we need cash to transact to buy  stuff for the things we need.  In business, you need cash run the business - pay your employees and suppliers.   Cash is the stuff that makes the world the business go round.

So never run out of cash. It is the  greatest sin, mistake that your business can make.  The business world can be unforgiving if you are out of cash ie bankrupt.

Therefore:

1.  Sell  (that is the first thing in your agenda)
2. Collect your receivables promptly and decisively
3.  Anticipate your cash needs see your bankers, creditors early
4. Maintain a good credit standing with lenders and creditors
5.  Stretch your cash position by asking for credit terms and extending this a little bit
6.  Avoid the siren song of over expanding.
7. Engage in a year long cost, cash reduction measures

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Mind of Strategist by Kenichi Ohmae

Ateneo Professor on Entrepreneurship

Rizal  |  Philippines  | December 31, 2013

It is just 7 hours before 2014 and here I am collecting my thoughts on business, management entrepreneurship, and strategy.

I am reminded of Kenichi Ohmae, one of the most brilliant business strategic thinker of the modern times.  He must have advised hundreds of Japanese businesses develop winning strategy.

He is more well known for the 3C triangle:  company, competition and customer.  I remember him for emphasizing the Sales - Cost = GP equation and having a long road map for this;

1. All businesses should emphasize sales/selling growth in sales.  All top efforts must be made to sell. Investments must be made for selling. Selling comes first.  Selling is top priority.  It is a key activity, as fighting, destroying the enemy is in warfare/military.  Make no mistake about this.

Thus what do you do:

      1.  Bundling

      2.  Upselling

      3. Use all marketing channels:   below the line, above the line, internet marketing.  Use autoresponders in internet marketing.   Do viral marketing etc.