Gun shots, drunk drivers, mayhem, and even curfews qualify as just some of the things![\"\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2021\/06\/Hit-hardest-issues-2.jpg\")
that could bite in the early morning. \u00a0And heck, soon I found myself the father of a teen-age female driver, and truly understood my Dad\u2019s admonition.<\/p>\n
But how does this have anything to do with our business lives?<\/strong><\/p>\n Think of our midnights: time and money.<\/p>\n Take deadlines for example. \u00a0We often miss them, sometimes by a long shot. Every day a deadline for development, rollout, marketing campaign or even corporate reorganization is missed, we burn fixed overhead \u2013 money. \u00a0And we know that there is only so much available to burn at that.<\/p>\n Time management:<\/strong><\/p>\n [Email readers, continue here…]<\/em><\/span>\u00a0 \u00a0 Companies have gone out of business from a lack of time management, especially when additional capital is not available when most needed. \u00a0Time management is a critical element in an early-stage business for this reason. \u00a0The sense of urgency senior management must create is a real and necessary skill. \u00a0Like most management skills \u2013 not easy nor pleasant. \u00a0But necessary.<\/p>\n Money \u2013 the asset we take for granted until low or gone.<\/strong><\/p>\n Good managers are good students \u2013 easily coached by those on their boards or advisors who have been through eh rough times in their business lives.<\/p>\n So, it is true for us in business too. \u00a0\u00a0Nothing good happens after midnight<\/em> \u2013 that event when money or time catches up to our business plan and begins to bite. \u00a0Gun shots, drunk drivers, cash crises, deadlines missed.<\/p>\n Do you have that sense of urgency?<\/p>\n","protected":false},"excerpt":{"rendered":" Here\u2019s another one from my Dad, a very wise man. He gave me this advice right after I received my driver\u2019s license years ago.\u00a0 It took years to understand the importance of this prophetic statement. Taking this advice literally: Gun … Continue reading ![\"\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2020\/04\/Burning-cash-300x300.jpg\")
We admonish our CEO\u2019s to keep six to twelve months of liquidity available. \u00a0We know from experience that raising money may be nearly impossible when economic times are tough, and when we have under-performed on our business plan. \u00a0We tell our CEO\u2019s to raise cash when not needed \u2013 because that is the time when it is easiest to raise. \u00a0Or when the news is particularly good. \u00a0Or the terms offered are especially favorable. \u00a0Or even just when available at any reasonable cost in equity or interest.<\/p>\n