Cash is King

I am, as they say, "in transition". That means I'm networking, developing my "personal brand", combing job postings and going on job interviews. I state this not to generate empathy because I'm sure the right opportunity will come along. I mention it as a backdrop for this post. Cash is king. I have been on several job interviews, and regardless of the organization, it's size, it's revenue stream, it's mission, when I ask - "What keeps you up at night?", the answer is invariably cash flow issues.

These days, in healthcare and other non-profit organizations, earnings are less important than cash. The cash flow statement is what external lenders, investors and potential donees focus on. Perhaps, if you're creative and aggressive, revenues are rising. But if third party payments are slowing down, or you're not on top of contractual payors and grantors, or you're not maximizing the potential billing you can squeeze out of every contract, cash flow is not keeping up with revenue.

It's critical to measure and monitor cash, so it's essential to develop cash flow projections, preferably of the rolling, thirteen week variety. Refresh the projections weekly. Look for points in time when your liquidity could be in jeapordy, and plan for how you might deal with the situation.

Of course, your cash situation won't improve on it's own, so now is the time to seek opportunities to streamline operations, create new revenue streams and strategically plan for better times. Good luck, and if you need someone to bounce ideas off of on where to start, feel free to contact me.