Managing Your Cash Flows

Cash flow management is the most critical factor in an Entrepreneur’s ability to successfully grow a business. Yet more often that not, Entrepreneurs react to cash flow problems rather than actively managing this area.

Entrepreneurs need to ask themselves what metrics they are using to monitor cash flow. Are these the appropriate measures? How timely and useful are such metrics?

What type of tools are Entrepreneurs using to manage and more importantly increase the available cash in their business? Are these tools continually refined to make them effective?

Entrepreneurs would be better served to proactively manage their cash flows, or at least monitor this important area if such management is delegated to others in their organization. Don’t ignore cash management or it could become a critical issue for your business.

Ravi Patel

http://www.patelcfoservices.com

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Published in: on August 25, 2015 at 4:10 am  Comments (2)  
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Should You Promote From Within?

As Entrepreneurs build their management teams, they are often posed with a dilemma – should open positions be filled from within the organization or should they hire from outside? This is a crucial issue.

The pressing needs of the company have to be balanced with motivating, developing and rewarding high-potential individuals internally.

A good philosophy is to identify, train and develop loyal, internal people for the long-term management team of the organization. This is what I call Entrepreneurs “Doing the Right Things.”

However, when a company is on a growth path, all the necessary skills to build the company might not be available internally. In these situations, knowledgeable and experienced executives should be hired from outside to fill the void.

This dilemma can only decided on a case by case basis depending upon the specific situation. Formulating an optimal balance between internal promotions and external resources is the blueprint for long-term human capital management for Entrepreneurs.

Ravi Patel

www.patelCFOservices.com

Published in: on August 18, 2015 at 4:38 am  Leave a Comment  
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Not Being a Hero

Entrepreneurs might think of themselves as heroes trying to hit a home run or create miracles. Is this helpful?

Heroes are generally created infrequently and for a very short time. While you might feel that you have to rescue your company from all situations, it is not always possible and more importantly not the right thing to do. A crisis manager in one situation is not always a great leader.

Successful companies need long-term leadership that builds the organization and the employee team to solve problems and exploit opportunities in the absence of the leader. Dependence on a hero can only work in the short term or in a few instances.

While Entrepreneurs might think of themselves as “super-heroes” for starting the company and making it grow though its infancy, strong business leadership is necessary to nurture it for long-term growth and success.

Be a leader rather than a hero!

Ravi Patel

www.patelCFOservices.com

Published in: on August 11, 2015 at 3:54 am  Leave a Comment  
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Being Right is Not Important

In entrepreneurial companies it is  is critical to do the Right Things for growth. Thus, who is right should not matter as much as doing what is right.

Does this actually work in practice?

If the Entrepreneur has created a culture of favoritism and is partial to employees whom he/she likes, then who is right will take precedence. Employees will try to prove they are right to win favors with the Entrepreneur and might even try to put others down. This is not a healthy environment!

However, if the Entrepreneur has established a culture of teamwork and continuous improvement, then what is right will prevail. There will be more emphasis on doing the right things for the company rather than establishing who is right. In this case it becomes a win-win situation!

What would you as an Entrepreneur rather have?

Ravi Patel

www.patelCFOservices.com

Published in: on August 4, 2015 at 4:36 am  Leave a Comment  
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