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.
All banks make a good show of listening to you. But only some banks really hear what you have to say. There are strategies you can employ to improve your banking status, and back-up plans in case the relationship turns sour.
Most business people have a suspicious, if not adversarial, attitude toward their banks. This is both unnecessary and unwise. Richard L. Whitsell, President and CEO of Legacy Bank, explains banking from the banker’s point of view, providing insights on improving your financial relationships.
Not all private equity investors are created equal. They all have their own agendas, ranging from long-term conservative company-building to flip it fast and get out quick. Make sure you know which kind you’re dealing with by getting to know your potential investors first.
Ola Robert Hassan, Founder of Ola’s Exotic Coffee and Tea, discovered that people who feel like owners tend to work harder for less. He has used this to great advantage in building a motivated team. But there are risks involved in giving the wrong candidates too much equity too early.
Bringing in investors is a great way to ease cash constraints. But, as Paul White, CEO of Novazone Inc found, there’s a fine art to soliciting investment while balancing your company’s day-to-day needs and your family relationships.
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).