Profitable thoughts

Handling things wrong again today. I want to say all the right things. Be the one with vision and foresight. And I keep saying the wrong things. My mojo is way off.

Here is an example: I know from years of experience at Koko that small companies often make the mistake of thinking that short term dollars are more important than profitability. Cash flow is king they say. I may lose money on this deal, but we need the money for next weeks payroll. This is a mistake of bankruptcy proportions. A company should only do something unprofitable if they think that the effort involved will directly yield a profit in the future. Example: Invest in a big technology item like a laser cutter for sheet metal. This will allow you to be more profitable in the future by cutting costs for sheet metal construction and installation labor. Another example: Invest in building a technology product which you can resell easily rather than take on short term projects.

It takes vision and guts to choose the profit path. You have to see the big picture. Profit sustains a company forever. Project cash only pays next weeks payroll.

So anyway, I believe all of this whole-heartedly, but I can not seem to convince people that this is a truism. That profit is king and not short term cash. I remember when I tried to explain this to my partners at Koko. They didn’t want to believe me either. I think it is the WAY I am explaining it. I think I may be a terrible “convincer”.

In all of the biographies I have read, there always seemed to be a seminal moment when the hero gets his/her big break. Someone who believed in them and taught them how to accomplish what they dreamt. A mentor.

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