Focus on Growing Cash Flows Not Just Revenue

Several entrepreneurs with fast growing businesses told me they have recently made cost reductions in response to slowing business and the economy. One business owner told me, he and his CEO cut $600,000 of annual expense from their operating budget in 45 minutes! The more interesting thing was they all also said, “I wish I had done this two years ago. We don’t even notice the impact of the cuts.” Why this happens: Entrepreneurs particularly of fast growing companies often get overly fixated on revenue growth. Its understandable, why this happens. Revenue is easy to measure and its common sense […]