When I started my business,
It so happened once in the early days,
We got a yearly retainer contract,
And on basis of that, we hired & expanded.
Suddenly, our calculations fell apart,
Because the client we depended,
Was having issues sorting the payment.
“Let your employees wait for salary until you get paid”,
Said my friend.
But I refused!
I used my savings & credit card,
To pay on time to my employees.
This difficult learning taught me:
1. Cash flow and Sales are two different animals.
2. Cashflow must be considered before executing any plans of expansion, hiring etc. Sales should not be the only driver of decision-making.