I love having options. By options I mean the power or right to choose: freedom of choice. Business owners need options, and I place a high priority in assisting them in having as many options as possible. The absolute best way for entrepreneurs to have options is to have an abundant cash balance at all times. With a large cash balance the options are many and here are a few:
- Leave the cash alone
- Reward your key people with a bonus
- Pay down or eliminate debt
- Get an above normal discount by paying suppliers
- Invest in much needed equipment or other long
- Enhance and develop marketing and advertising
- Invest in research and development
- Open up new markets and territories
- Contribute to your favorite charity
- Did I say leave the cash alone?
- Etc., etc.
I believe you get the picture. Having options gives a business owner freedom and this results in:
- Less stress
- Peace of mind
- A valuable company
Cash=options. Put the controls in place and do what you have to do to establish a solid cash position. I highly recommend the following books to assist in having more cash.