In order to head off this problem, businesses must either be adequately capitalized and must shore up cash reserves to meet all obligations as they are needed and to handle downturns and emergencies that may arise. Too often executives and small business owners fail to focus enough on cash flow generation. A healthy profit may look nice on your financial statements, but if capital expenditures or receivable collections are draining your cash, you won’t be able to stay in business for long. Cash is King! We’ve all heard this maxim and it is more true today than ever before. Cash, Borrowing, and Resource Management. Without trust, the business will not be able to compete effectively and it will eventually fail.Ģ. These practices erode the trust that needs to exist between employers and employees, between business partners, between executives and shareholders. Sadly, the theme becomes highly infectious and soon people actually start to feel like lying a little, or stealing a little, or deceiving others, is just “a part of business”. Many business employees and executives succumb. The temptation to cut corners, omit information, and do whatever it takes to get ahead occur every day. Everyone is struggling to be more successful, to make the next quarterly earnings estimate, to keep their job, to earn a big bonus, or to compete effectively. Business has never faced the type of moral challenges that it faces in today’s global economy.
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