It’s All About Cash Flow, Baby.

Posted by Bernie Reifkind on October 13, 2011

Al Davis the legendary former managing partner of the Oakland Raiders was fond of saying “just win, baby.”

That was his way of cutting through the BS with no excuses: just win the game.

How does that apply in business, especially in the senior living industry?

In every business large or small, profit comes from far more revenue coming in than expenses going out.  That’s the bottom line.  No excuses.

With a nod to Al Davis: it’s all about the cash flow, baby.

Easier said than done especially in this dismal economy.  But positive cash flow is king. It’s the life blood at the heart of a business.  Clog the arteries and you’re dead.

For the senior living industry there is a politically incorrect philosophy about how to succeed: it’s called “heads on beds.”  It’s a business that relies on census.  If the facility is full, then there will be positive cash flow and everyone is happy.

Heads on beds.  Crass but true.  Full census=cash flow.

Of course a senior living business plan should have a high moral compass and an ethical mission plan (after all they are responsible for the lives of others) but …………it all comes down to getting paid.

That’s just common sense business, no MBA needed, thank you.

Cash is the fuel that runs any business, and it has to flow constantly, especially if you are running a nursing home or assisted living facility.

That’s the  challenge faced by business owners and employers everywhere.  The demands of making payroll, paying operating costs, taxes, etc., has to be offset by exponential revenue.

So business owners, here is some hard earned advice from yours truly:  run an ethical business, follow all the rules, kill them with kindness and be ruthless if you need to be, but be very careful about 2 things:  promises and hope.

Your customers can promise you all day long that the check is in the mail and you can hope all you want, that the check will arrive but it’s all about cash flow, baby.

So get paid.  The first goal in business is to stay in business.

I am Bernie Reifkind, CEO and founder of Premier Search, Inc. I can be reached at 1(800) 801-1400 or email at ceo@psihealth.com.  I welcome your phone call.

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