Profitable and Bankrupt at the Same Time
Most people don’t think those two words go together.
In fact, I never really thought about it either until I heard a story told by Jim Collins, the legendary author of Good To Great. Awesome book, by the way.
It goes like this…
Bill Lazier was a professor at the “prestigious” Stanford Graduate School of Business, and was known for his rather direct teaching style.
When talking about a case study, he liked to get right to the point.
“What’s the central issue in the case?” He’d push.
A bunch of over-achieving, smart sounding, brown nosing, MBA types rattled off their thoughts…
“the company’s strategic choices”
“identifying their value chain”
“developing a brand”
“NO!!!” the professor would yell…
Finally, some brave soul raised his hand. “Uh.. not sure if this is what you are looking for… but the company can’t make payroll next week. The company is going to run out of cash.”
Bingo. Jackpot. A+.
The wise professor then responded, “Never forget, You pay your bills with cash. You can be profitable and bankrupt.”
Think about that. What is this Stanford Professors point? It is simple: Cash flow is the key to any success in business. You can have the greatest business plan in the world, you can even be profitable, but without cash, you don’t have anything.
I have found it to be the key to financial success personally as well.
Someone with all the money in the world that can’t use it is no better than the beggar on the street corner asking for change.
So the real question becomes, “how can I use my resources to bring in monthly cash flow?”
(by the way, if you want to find out how me, and hundreds of others from around the world are bringing in monthly cash to our account, make sure to get my course Credit Spread Trading Made Simple)
Don’t be like the MBA types in the story. They missed the real point to what will create financial success. They thought the answer lied in some mystical and hidden formula, theory, or strategy.
They were wrong. The answer is CASH. And if you want to learn how you can add another income stream to your household, pickup a copy of my course today at:
Talk to you soon,
Jeff Ziegler
PS. If you want to read the whole story I mentioned above, check out Collin’s new book How the Mighty Fall and Why Some Companies Never Give In
Leave a Reply
|
||||||||
