CASH MANAGEMENT
STOP “ GROWING BROKE ” BY PUTTING CASH
MANAGEMENT
Front & Center
BY : VERNE HARNISH
Are you growing broke ? Gary ’ s Furniture was , until its owner mastered cash management . Established in 2001 , Gary ’ s Furniture — a fictional name to protect the company ’ s anonymity — imports and manufactures high-end furniture . During its years of operation , it has grown from a startup to a well-established firm , with revenue in the tens of millions of dollars and profits rising with increased revenues . Its customer base has continued to grow , along with its geographical reach . Gary is a member of a local CEO forum group . When asked by the group to score his satisfaction with his business ’ performance , he consistently scored his business 10 out of 10 .
Gary had no concerns when his bank called a meeting one day at his head office , shortly after he submitted his recent financials . But what Gary didn ’ t know was that he was outgrowing his ability to fund the business because he didn ’ t understand the supreme importance of cash . Essentially , he was “ growing broke .” In such a situation , the smart money will flee , which only speeds up the demise of
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