Cash flow is king. Everyone who is managing a successful business knows that. Even the crocks who runs those over valuated retarded tech startups cannot run away from it – They can only keep on lying if they have enough of your pension funds in their bank account. If you’re serious about your business, you need to plan ahead, and make sure that you’re on the safe side in terms of cash flow. By the time the tax authorities, your employees, the pension funds, the VAT, your suppliers and everyone else who is looking to suck from your warm golden tit will knock on the door, your theoretical gross profit will only be relevant to your broken excel sheet.
So what do you do? You’re looking for clients who pay faster, you increase your margins, you get funded by greedy investors or you just take a loan and feel less stressed when you open your bank account. Always make sure you have enough funds to run your business for a few months, even if things go wrong. But there is one exception, and it is more important than your business’ cash flow – Your own personal bank account.