Chapter 21. Cash Flowing Now
Better eight hundred in cash than a thousand on credit. | ||
| --Chinese proverb. | ||
Definition
Cash flow is self-explanatory. Can you receive revenues now? The definition of “now” can be flexible—now could mean up to 90 days or so. But the point stands. If you can derive revenues very soon, even partial revenues as earnest money deposits, then this element scores highly. Can you attract revenues prior to the publication of the business plan?
Relevance—Why Add This Element?
It is nearly always possible to attract revenue early. The cash does not need to exceed your costs—it only needs to be generated in pursuit of the enterprise’s mission. It moves the wheels of progress. Suddenly marketing, operations, finance, human resources, ...
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