I´m participating in the 6 for 06´ program AllBuiness.com recently launched. If you haven´t been following it, you should. There´s a ton of practical information being dispensed from all involved.
We´re entering our 4th working week and it dawned on me I haven´t been saying much about it. I have a lot to say and will be doing so over the next several posts, weeks, and months.
The first thing I want to toss out is the word and term cash flow itself. There seems to be no unified way to spell it, both cash flow and cashflow show up all over the place. I´ve found myself writing it both ways. Mostly I´ll stick with cash flow.
The two spellings of cash flow are of interest because it´s the tip of the iceberg of confusion and disagreement over what cash flow is and isn´t. There´s no big scandal or great issue here, just a lot of opinion and no universal definition. I liken it to the word branding. Toss the word branding into a marketing conference and stand back"?¦there will be a thousand people giving a thousand different variations on its definition. The same happens with cash flow.
For the purpose of this exercise, here´s how we´re defining cash flow: The flow of money into the business and the flow of money out of the business — keep the water level as high as you can and don´t let the tub run dry.
I know it´s not elegant, but it works.
In future posts, I´ll share a bit more about my work with Guardian Medical Group and thoughts and ideas we´ve tossed around. We started implementing several changes and already have made a noticeable improvement. Be sure to read and comment on Rick Danzey´s blog. Rick is the business manager of Meridian Medical Group"?¦my partner in this program.
How do you spell cash flow? Better yet, how do you define it?