Cash Management: Why the Recovery Might Be Your Toughest Challenge


Many businesses are worried about surviving the recession, but they should be just as concerned about surviving the recovery. 

To understand why, think about a deep sea diver.  No matter how skilled or experienced he is, he is limited by the amount of air in his tank.  He can’t create more air once he goes under, so he must reserve enough air for his return to the surface or he won’t be diving again.

For businesses, cash is like the diver’s air.  As sales decline and revenue drops, you may have enough cash reserves to survive on the “bottom” for awhile, but when it’s time to return to the top, will you have enough air to make it? 

Be smart about your cash usage.  Be proactive.  Be innovative.  If you don’t, the return of the “good times” may be your toughest times yet.


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