We have all heard it a million times… cash is king! Cash is king!! Yes in business, cash is absolutely King. You simply cannot operate a healthy and sustainable business without enough cash on hand. How much cash, or access to a line of credit, is enough? Well, it just depends on how long you wish to operate your business without being driven by cash-based decisions. In my humble opinion, it should be at least a few months of operating expenses. Cash provides operating cushion, and cash provides the ability to act when opportunity presents itself. Yes, cash is King, but now let’s introduce ourselves to the rest of the Royal Court.
If cash is King, then the Queen of the kingdom is the products or services you provide. If you don’t have solid products and services, your business simply cannot thrive. Chronic quality issues will erode your ability to retain the customers you have, and inhibit your ability to acquire new customers. Sales and Marketing are the Prince and Princess of the business kingdom, for without an authentic brand and strong sales, your business cannot expand. The Duke and Duchess are innovation and process improvement. Innovation creates a pipeline of new products or services to create business longevity; and process improvement, when done correctly, inspires a culture of excellence. Finally, the Count and Countess of the kingdom are all of the infrastructure and support services that allow the Royal Court to operate smoothly.
Whatever your business is, or whatever kingdom you may live in, you must remember there are many essential elements to operating effectively. Even though it may have the appearance of a hierarchical monarchy, never forget the symbiotic nature of the entire entity. Each of the Royals has a role and purpose in making things run smoothly. Without that basic understanding and mutual respect, there likely won’t be peace and prosperity throughout your land.
Jim Hoefflin's Blog 