Running Out of Time…….Every Month……?

By Sid Chadwick

If “Cash Flow” is tight for what I desperately need to re-invest, how do I insure that we don’t lose money….any given month?.........CEO, Peer Group Meeting


A highly respected, very profitable Peer Group member (we’re talking 20 – 25% ---year after year)… is observed to remark, “Most of our competitors are on a steady glide path…into the side of a mountain…..”

Profits OverstatedHere’s a series of suggested items to track ---to insure a positive financial result, every month:

  • Track (that means keep a running total) of the “value-added” dollars of every order that’s entered, that’s due to be delivered --- this month. (Do this, every month.)
  • Know how much your monthly budget is, each month --- to pay your bills. That number includes debt payments, payroll, utilities, required government payments, etc. --- of all designs.
  • Your objective: Win enough “Value-Added Dollars in Work Won” --- that’s due to be delivered --- each month --- that allows you to pay allyour bills. (Don’t allow yourself to run short.)

Is it really that simple…..?

Yes, it is……and…. I’m amazed how many companies don’t do this……Company after company tends to Estimate 4X--7X’s the business they need to make money --- each month --- but tend to not track the ‘Value-Added Work Won” --- on a daily basis:

Key Question to ask, every day:

How much Value-Added Dollars…. are we scheduled to deliver and invoice this month --- relative to our bills to pay….?


Smart companies “build-in” a “margin of error” --- say 5% --- to insure that any unexpected bills (e.g., emergency repairs) --- are “also covered”.

We see an ever-faster transformation occurring in our great industry--- customers moving to consolidate suppliers --- who are recognized as Progressive, Reliable --- and ever more……Easier To Do Business With.

Dick Gorelick had a deep, understandable contempt for our associations….for how little they brought forward to (a) nurture the financial health of the average company, and (b) elevate opportunities --- to grow print demand  – as associations clearly preferred to promote social activities --- sometimes describing them as……“Arranging Deck-Chairs on the Titanic”…..

“Management is doing things right…….Leadership is doing the right things”…….Peter Drucker




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