“He who sits behind the wheel of your business controls the direction and speed. Never allow money to move from the passenger seat to the driver’s seat.”~Keith M. Dean~
Money as a necessity in any business. When you start your business, you can consider looking at it from two different perspectives; 1. I am creating this business for more money or 2. I am going to use money as tool to create a great business. By adopting #2, you put yourself on a course which untangles you from a web of forever wanting more money, and never being able to accept an agreeable limit. By fully embracing #2 you increase response ability levels with respect in the proper application of your cash. Most importantly of all, money will never be the driver behind the wheel of your business, you will, affording you the opportunity to choose your business direction and the speed of its growth.
Once changing the mindset of seeing money as a tool there are factors which will always have to be at the forefront as you start utilizing your money to achieve your purpose.
Safeguarding your cash and physical assets is a high if not the highest priority factor that requires continuous monitoring, review and sometimes revamping. The daily reconciliation of cash and goods at the front-line level is a critical must. Periodic internal financial and inventory audits is a necessity. By creating an organizational structure which eliminates the overlapping of personnel handling key functions such as record keeping, account reconciliation, receiving and ordering of goods, and payment authorizations also plays a vital role.
Accountability is the cementing factor which will help in securing cash and assets along with mitigating any losses. All associated tasks should be conducted with meticulous oversite by all leaders, straight up to the C-Suite. When the actions of personnel at any level violate the rules and regulations which govern the company’s policies surrounding cash and asset handling, swift corrective disciplinary should be meted out.
Maintaining the value of your money is critical. By having a well thought out plan and qualified persons overseeing the timely implementation and working of those plans will not only ensure long term stability but will either avoid or catch those red flag warning lights before any disaster occurs.
Knowledge of the basic money movement fundamentals is crucial. Because of the volatile nature of economies and markets, keeping abreast of how the banks, investors, suppliers, and customers see the investment value of their money in your industry is critical to having constant accesses too and flow of money.
Do not be afraid to use it but do so with prudence. Many great ideas are either stalled or degraded because of the fear of losing to much money and poor ideas are implemented when there is an abundance of cash on hand. Decisions on money utilization should not be made in a vacuum. If you are a business of one seek outside advice you can never have to much information. Medium to large business a great proportion of the value of your employees lies in the experience they bring to the table. By tapping into that experience through employee engagement will not only build a healthier work environment but can lead great ideas which bring about higher profit margins.
Keith M. Dean/CEO &Founder – The BusinessofU
