Today’s journal comes from Jason Lorimer of Publicitr.

Profits are the heart of your business, so of course cash flow is important. Some would argue that it is the lifeblood of your business. This is definitely true; however this mentality also contributes to many start up’s failing inside the first two years.

Spend, Spend, Spend

Most early stage companies feel they need to “spend – spend – spend” in order to get exposure and new customers. Public Relations firms, expensive collateral materials, and worst of all fancy office space.

These dollars add up and up. Before you know it, your burn rate is totally out of control.

Now you absolutely have to make X amount of sales each month to keep up. When you have to do something, you are backed into a perpetual corner. Besides the unnecessary stress of being in this constant state of anxiety, you are forced to make decisions about your business that you would never see yourself making. These decisions that may seem like simple compromises at the time, but they are real the life blood of your company.

These are the choices that really determine your success in the long term.

“It’s not just how fast you run the race that matters . . .”

Make smart decisions and don’t skimp on the important stuff. It is all about being ready when the opportunities come along. Focus on that every day and you will be successful in time.

Most importantly, be patient.

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