Cash is King? Seems like we hear this a lot when times are bad, but not so often when times are good? The expression started after the global stock market crash during the late 80’s, a bad time for a lot of people. When times are bad for any business, we become keenly aware of every cent. But what about when times are good? Shouldn’t we be keenly aware of every cent during good times too?
Businesses that are making a decent profit each year assume everything is going good, and no one wants to mess up a good thing. Poor performing areas of the business are covered up by the areas doing well. Poor spending decisions are made, but stay hidden because of profits.
Businesses are entities that are run by a culture of people. This culture is a primary force in the direction of the company. During successful times, the entity along with its culture can become fat and lazy. And what happens when we become fat and lazy? We become more susceptible to the things that can prey on us.
If we want to be diligent about our business all the time, using the word King to describe how we treat cash doesn't make sense. Cash is important and Kings are important; I get it. But how about an expression that is meaningful all the time. Maybe better expressions would be; Cash is a Carbohydrate, or KPI’s are King. I would love to hear your thoughts.