Cash Flow Is King
Wherever you get the money for your initial investment-whether it's a loan from relatives, funding from a venture capitalist or a line of credit from a local bank-you must keep the cash spigot flowing. This is possibly the single most important component of running your enterprise. Vendors may act like your friend, but they'll turn on you like a sand viper if you're slow in paying your bills. And just try to regain the trust of your employees if you miss a single payday. Some tips: Keep an eye on costs-squeezing a dollar here on travel budgets and five there on advertising will add up and keep more money in-house. Also, cut deals whenever possible. With building landlords, reduce lease costs by offering to stay an extra two or three years. Chances are, they'll take the deal if you're a good tenant just to keep their own cash-flow spigot running uninterrupted.