Vol. 47: Building a Business: Hey, I’m profitable; so why don’t I have cash?

The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.

This page provides the Print-Friendly Version of the article, as published.

Any related materials or articles referenced in the column, or otherwise applicable, will also be referenced below:

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Article published -Monday, August 3, 2009

Building a Business: Hey, I’m profitable; so why don’t I have cash?

By Lary Kirchenbauer

Businesses must focus on inventory, accounts receivables to get answer

“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett

Victory … Defeat. Won … Lost. Revenues … Expenses. These are well-understood concepts among business executives. Profits … Cash? Oops, sorry. That may be the biggest conundrum among business leaders: If I’m making all these profits, why don’t I have more cash? My company generated $500,000 in profits this year, and we have only $10,000 in cash. We can’t pay bonuses or contribute to benefit plans without cash – where did it all go? (more…)

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Vol. 36: How to deal with your bank

The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.

 

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Article published – February 23, 2009

BUILDING A BUSINESS: Ideas for your business you can take to the bank

“Money is better than poverty if only for financial reasons.”   – Woody Allen

I’ve received a lot of questions lately about banking issues and the “rules of the road” for dealing with your bank in a troubled economy. All of us are facing an economy that I refer to as the “Double V” – an insidious environment comprised of big volatility and little visibility. These twin engines will predominate for the foreseeable future.

This week’s column will start with Banking 101 as we make our way toward more subtle concepts. Unquestionably, this process is more artful than scientific, and while there are mechanical tasks and financial metrics that apply, managing your banking relationship requires both judgment and discretion.

• No Surprises. It’s no surprise that “No Surprises” is at the top of the list. (more…)

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Employees are like napkins . . .

CFO Magazine recently interviewed three business leaders about headcount reductions. There are some valuable nuggets in this article:     Cut outputs - not inputs. The cost of hiring and training often outweighs the savings from force reductions. Don't overlook employee recognition. Have a short-term cash flow projection - no…

Continue ReadingEmployees are like napkins . . .
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