At Ten Key, Inc., we’re continually educating ourselves on business, so in the coming months, we’ll be featuring reviews of the business books we love. Got a business book you love? Let us know, and we can include your review (with a link to your company website) in an upcoming article!
It seems appropriate to review one of our recent finds, The Pumpkin Plan by Mike Michalowicz, in October, when we seem to be surrounded by all things pumpkin. So grab your pumpkin spice latte and read on!
The Pumpkin Plan was inspired by pumpkin farmers, and the very specific way they grow HUGE pumpkins. Michalowicz uses this metaphor to talk about how to grow your business. We’re not going to spoil it for you, but some of the big ideas include determining your best customers, focusing on what you do best, and expanding your offering based on customers’ needs. But of course, we’re an accounting firm, so the concept that hit us right between the eyes was the importance of cash flow.
Cash Flow and Your Business
The author puts it pretty directly: “I’ve said this before, many, many times, but it’s worth repeating several million times more: cash is the lifeblood of your business.”
Now, what does that mean? Well, to us it’s very simple: your cash flow is the foundation of your business. Inventory and receivables are important: on a balance sheet, those assets provide an in-depth picture of your business. But at the end of the day, what’s most important is that you can pay your bills and still have some left over.
When a client comes to us and says something like, “I’m working so hard and still not taking a paycheck,” or “How can I have all these assets and still have debts I can’t keep up with?” then the problem is usually cash flow. If your cash flow is not–well, flowing, The Pumpkin Plan advises you to take a long, hard look at your expenses. What do you really and truly need to run your business? Michalowicz suggests: “Go through everything, line by line, and ask yourself, ‘Does this serve my best clients best?’ If it doesn’t, let it go.”
Are you ready to grow? We encourage you to read this book and learn more about growing your business The Pumpkin Plan way. And if you want to learn more about improving your cash flow, contact us and set up a meeting! We’re always available to help you make the tough decisions to grow your business. Let’s be pumpkin farmers together, shall we?