Businesses grow and win because they invest in areas that make them more unique, and more special. They do not succeed because they invest their cash so that they can save overhead. So how should we be investing in our businesses so they emerge better and stronger? There are three basic parts to the process.
One of the fundamental truths of business is that cash is king. Too many firms run so lean that they are at risk of shutdown if any large problems arise. Find out where cash goes, where it should go, and how to stay in a comfortable range.
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).