TIME is the Most Valuable Business Asset
The first question that most lenders ask is “how long have you been in business?” If the answer is not “enough” they might not even look at the application. Questions like “what is your background” or “what does the future of your business look like” never get asked. Without TIME in business many business owners feel left on their own.
The more TIME a business is in business the more likely it will be able to obtain debt financing. The longer it operates successfully the less expensive that cost of financing becomes. New business owners need to be reminded of this occasionally.
Business owners have a lot on their plate, so TIME management is an important skill for them to have. Worst-case scenarios have them jumping from one emergency to the next and neglecting important areas like sales, profits and managing growth. Failure in any one of those areas could cause them all to spiral downwards and out of control.
Most business owners struggle with Cashflow and even experts have a hard time accurately predicting the cash inflows and outflows of a business. Without adequate Working Capital the TIME between being paid and having to pay can become more important than the price that is paid. This is not a good place to be and a time when many bad business decisions are often made.
Business owners by nature tend to be impatient, eager, and prone to taking quick action. We need to encourage them to take their time, practice solid cash management and be aware of all the financing tools that are available to them. What we are teaching them is to harness the power of TIME.
Great one Tom. Simple but makes you stop and think. Time is precious; money is precious. Time is our worst enemy sometimes but a precious commodity. It’s a a resource that is difficult to manage but needs to be, always. Being able to use and gauge Time effectively by a business owner certainly is a required skill; success lives in that space between procrastination and rushing decisions. Perhaps the difference between success and failure.
Look forward to your next Blog