Balancing Short and Long Term

Quick Insight

Having a cushion of cash allows you to focus on the future.

“Part of being realistic is operating on multiple time frames: dealing with today’s crisis and, at the same time, planting seeds that will allow you to develop your potential in more favorable times and circumstances.” – Robert Steven Kaplan in What You’re Really Meant To Do

I’ve worked with entrepreneurs that operate in two very different ways. Some need the company to produce cash in the near term. They must balance taking gigs and selling for short-term cash against building for the longer-term success of their business.

Others don't need cash today from their company. Entrepreneurs who aren’t pressured to produce short-term cash flow can focus completely on the long-term health of their business. Not all entrepreneurs can wait until they build a large cash cushion before starting their business.

Needing cash puts you in a short-term survival focus. Having a cash cushion of savings gives you freedom to prioritize long-term value.

I wish you the cash liquidity that allows the seeds of your potential to sprout. I wish you well.

- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: How to Create a Cash Flow Projection - This video walks you step-by-step on how to create starting from an easy and free template. A cash flow projection can help you identify “cash leaks” that are draining your profits, spot periods of low cash flow before they become a crisis, and know when you have the cash to capture opportunities.
  • Course: Business Loan Basics – Get the basics on how to business loans work. I’ll show you how to navigate the loan process. You’ll also learn tips on how to get lower loan rates.
  • Course: Entrepreneurial Finance - Small Business Financial Management Basics - Get a financial overview of the entrepreneurial journey from startup to operational decisions to exit planning. You’ll hear from a business banker guest speaker who explains what lenders look at when deciding whether to make a loan to a small business.
  • Course: Managing Cash Flow - This course shows you how to assess current and future cash flows. You learn techniques to increase cash flow and reduce dips in cash flow. I list critical sources of cash for businesses, along with the pros and cons of major sources.

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