While working with successful (and some not so successful) law firms, I realized the importance of having sufficient working capital in a business. I always knew the theory, but seeing it in action is more convincing.
Cash is King! When you have money, you have options! And having options is the ultimate freedom. It means you get the chance to shape your business into something that you envisioned when you decided to start your business the first place.
Too often I see entrepreneurs starting off with high hopes, than getting disillusioned because they end up a slave to their own “baby”.
A client from the west coast keeps more than sufficient cash around. An investment advisor would say that she misses out on potential investment income, than I saw it in action why she chooses to keep her firm liquid. When a new opportunity presented itself, she was able to take advantage of it immediately, and open up a completely functioning satellite office within days.
I know you don’t get to open up a new office, and expand this visually every day. But don’t ignore the effect of being able to make “smaller” choices every day! For example you can filter you clients, and start leading a happier, more profitable business.
I bet when you started your business, having options was on the top of your list. Don’t give up your ability to make choices!
Don’t be afraid to make plans again. Managing cash flow effectively will give you options you thought you lost a long time ago.