Cash flow discipline starts with psychology! Carl explains how in this episode of #70secondCEO.
Read full transcript:
Hi everyone, Carl Gould here with your #70secondCEO. Just a little over one minute investment every day for a lifetime of results.
A little bit of the psychology of how we manage cash as well, if you were hungry and you wanted to eat a cookie and you knew there was half a cookie upstairs, you would savor that cookie like it was the last cookie ever known. But if there’s a whole box, you wanted one and there were fifty you’d be like “oh I drop one on the floor no big deal I just throw that out”. If we’re given the last money to work with and the amount that we have to work with is very close to what we owe we’ll be very sharp, we’ll be disciplined about our cash flow management so if you notice your’e not gonna get to touch any of those top four accounts in the beginning you only get to play out of the operating expense accounts so we’re gonna take out whatever we think might be extra or we can afford to take out now and we’re gonna leave you with just a little bit more than what your operating expenses are, so you’re very diligent in making sure that you’re as economical and efficient with your cash as possible.
Like and follow this podcast so you can learn more. My name is Carl Gould and this has been your #70secondCEO.