When I was in college, I read the book And the Wolf Finally Came: The Decline of the American Steel Industry by John P. Hoerr.
This book tells of an embroidered pillow in the corporate raider T. Boone Pickens office that read, “Happiness is a Positive Cash Flow.” (Considering that Mr. Pickens hedge fund lost $1 billion his year and Mr. Pickens lost $270 million personally, he probably has a greater appreciation for this now than before).
At the time, I didn’t really grasp the significance of this sentence (like a lot of other things I learned in business school). After many years of small business operations and financial management experience, I’ve gained a deep respect for the wisdom in this saying.
Over the next few posts, I’ll be discussing cash flow and its significance to small businesses.