However, we’ve seen profits and cash double within a year when businesspeople also devote just a little more attention and resources to accounting (remember, John D. Rockefeller was an accountant by training).
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... successful companies held three to 10 times more cash assets than average for their industries, and they did so from the time they started.
When he initially asks them to introduce themselves, he finds that executives with good companies tend to share their titles, whereas executives at strong and great companies share what their accountabilities are in a very measurable fashion, e.g., “I am accountable
for driving revenue into this company.
We say “additional” because whenever management tells us there’s a cash-flow problem, we always start with fixing profitability, unless the company is broke and needs an immediate cash infusion to make payroll.
Owners like Gary choose to spend money every day to grow their businesses. However, sometimes they are actually spending their hard-earned money to cover management-influenced waste (read that again).
These are all executives who have been trained for years to grow their own businesses and are compensated based on their profitability. Suddenly I was saying to them, essentially, “I want you to pay less attention to the business at which you’ve been very successful, and start paying more attention to this other thing. And by the way, you have to work on this new thing along with these other very competitive people from other teams, whose interests don’t necessarily line up with yours. And one more thing, it won’t make money for a while.