Comments on: Run Silent, Run Deep, Run Out of Money http://timberry.bplans.com/2007/09/run-silent-run.html Tim Berry on business planning, starting and growing your business, and having a life in the meantime Fri, 20 Nov 2009 15:46:48 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Bill Dueease http://timberry.bplans.com/2007/09/run-silent-run.html/comment-page-1#comment-115 Bill Dueease Sat, 22 Sep 2007 23:32:18 +0000 http://timberry.bplans.com/2007/09/run-silent-run.html#comment-115 <p>I really like your statement “The most important problem is getting people who haven't been running companies to believe that cash flow and profits are different.” Both have to be understood and managed differently and carefully. They both affect each other. </p> <p>Unless of course, if you plan for cash flow improvements to occur as growth occurs. Having Just in Time Inventory, customer payments on delivery, or even customer payments in advance, and/or payment plans to vendors that are longer than payment terms to customers can all improve cash flow with growth. </p> <p>Thank you for pointing out the importance of both and alerting others that particular attention must be given to both growth and cash flow.</p> I really like your statement “The most important problem is getting people who haven't been running companies to believe that cash flow and profits are different.” Both have to be understood and managed differently and carefully. They both affect each other.

Unless of course, if you plan for cash flow improvements to occur as growth occurs. Having Just in Time Inventory, customer payments on delivery, or even customer payments in advance, and/or payment plans to vendors that are longer than payment terms to customers can all improve cash flow with growth.

Thank you for pointing out the importance of both and alerting others that particular attention must be given to both growth and cash flow.

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