Cashflow 101: An Education You'll Never Forget

It's uncanny. Every successful entrepreneur I talk to can recite the definitive moment or experience that turned the tide in their favor.

Nine times out of ten, it's an experience that helped or even forced them to 'get' cashflow management.

I know it has been that way for me. I actually needed more than one lesson, but I finally got it. :)

It's amazing how common it is that entrepreneurs or even fairly large companies (not to mention the likes of Enron) have no idea where they lose money and where they make money. Yet, it's obvious how important that is to know this one single crucial thing.

Fred Gratzon (author of the Lazy Way To Success) has posted one his exhilarating 'war-horse' stories on his blog, and yes this one's about -- cashflow management.

This time Art broke the silence. “Fred,” he sighed, “are you making money ?”

His question took me aback. “I don't know,” I replied honestly. “And there's no way of knowing. The accounting system is next to useless … as you well know.”

My response produced another abyss of dead air. When Art didn't speak, my heart dropped and my soul shrank. I pondered the tragic irony that my business was going to fail because it was too successful. And then …. The Universe must have hiccupped.

“Fred,” Art asked, “does it feeeeel like you're making money?”

“Well, it feeeeeels like we are making money,” I answered with Pavarotti-like sincerity, my moist eyes glistening with fresh, heart-felt tears.

Check it out, it's quite entertaining too, as you would expect from Fred.

Juho Tunkelo