Home / Top 10: Favourite Cash Flow Quotes from Cashbook
September 9th, 2021
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At Cashbook we have been helping clients in multiple industries with increasing their cash flows. We are experts in the cash automation software industry. We know how important cash flow is for survival, sustainability and the growth of an organization. In this article, we are going to take you through our top ten favourite cash flow quotes.
- “Never take your eyes off the cash flow because it’s the life blood of business.” – Richard Branson.
We love this quote from Virgin’s Richard Branson. It’s straight to the point and so true. No cash flow, no business.
- “We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.” – Michael Dell.
A great analogy from Michael Dell, founder, chairman and CEO of Dell Technologies. So many companies are focused on their sales and profit. If you can’t pay your bills your business immediately comes to a halt.
- “Entrepreneurs believe that profit is what matters most in a new enterprise. But profit is secondary. Cash flow matters most.” – Peter Drucker.
A key piece of Information for entrepreneurs from management consultant, educator, and author Peter Drucker. Profit is important but numbers on a page are not as important as numbers in the bank or what can be invested at any given time to grow the business.
- “Making more money will not solve your problems if cash flow management is your problem.” – Robert Kiyosaki.
Businessman and author, Robert Kiyosaki with an essential tip on how if your cash flow management is poor then making more money is not the solution to fixing it.
- “The three most dreaded words in the English language are ‘negative cash flow.” – David Tang.
David Tang, businessman, philanthropist and socialite. Sums it up perfectly with the words that you never want to hear from finance. In personal and in business more outgoings than incomings are never where you want to be.
- “Too often we measure everything and understand nothing. The three most important things you need to measure in a business are customer satisfaction, employee satisfaction, and cash flow. If you’re growing customer satisfaction, your global market share is sure to grow, too. Employee satisfaction gets you productivity, quality, pride, and creativity. And cash flow is the pulse—the key vital sign of a company.” – Jack Welch.
We love this quote from business executive, chemical engineer, and writer Jack Welch. There is quite a lot going on in this quote, but he sums it up nicely that if customers are satisfied and your staff are happy then your company is sure to grow. He mentions cashflows as the pulse – the key indicator of it all. Cashflows reflect the satisfaction of the other two pillars of a business.
- “Percentage margins are not one of the things we are seeking to optimize. It’s the absolute dollar free cash flow per share that you want to maximize, and if you can do that by lowering margins, we would do that. So, if you could take the free cash flow, that’s something that investors can spend. Investors can’t spend percentage margins.” – Jeff Bezos.
Amazon founder and Executive Chairman Jeff Bezos knows a thing or two about cash flow, being one of the richest people in the world. Absolute dollar free cash flow directly correlates to the amount of capital available to reinvest back into the business. The more absolute dollars that can be reinvested in the business, the better.
- “I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.” – Warren Buffett.
Business magnate, investor, and philanthropist Warren Buffett with a gold nugget on how he became the investment guru of modern times. Highlighting how damaging debt and in particular long-term debt can be due to changing interest rates, which can result in unpredictable cash flows. Warren ranks cash flow as a key indicator of a healthy or unhealthy business.
- “The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.” – Chris Chocola.
Businessman, lawyer, and former politician Chris Chocola again mentioning one of the most important lessons he learned. Balance sheets and income statements are the outcome of assumptions & timings. On their own they can be irrelevant. Cash flow movement are cold hard facts.
- “Avoid debt that doesn’t pay you. Make it a rule that you never use debt that won’t make you money. I borrowed money for a car only because I knew it could increase my income. Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.” – Grant Cardone.
Businessman and Author Grant Cardone with a quote on the importance of taking on debt to grow cash flows. Debt which is added for frivolous activities is growing other peoples cashflows.
Summary
We hope you enjoyed our 10 favourite cash flow quotes and that you learned how important a barometer it can be for the financial health of your organization. If you would like to discuss how to improve cashflows in your company. Then get in touchwith our team on +353 61 338 400 (international) or 630-352-2228 (North America), alternatively you can emailinfo@cashbook.com. We look forward to discussing how our cash automation software can help to increase and maintain a steady cash flow in your organization.
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As a seasoned expert in the field of cash flow management and automation software, I bring to you a wealth of knowledge and practical experience in helping businesses across various industries optimize their cash flows. The importance of cash flow cannot be overstated, and my expertise is rooted in a deep understanding of the intricacies involved in sustaining and growing organizations through effective cash management.
Now, let's delve into the concepts highlighted in the provided article on Cashbook's top 10 favorite cash flow quotes:
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Richard Branson's Quote:
- Concept: Cash flow is the lifeblood of business.
- Importance: Without sufficient cash flow, a business cannot survive or thrive.
-
Michael Dell's Quote:
- Concept: Focusing only on profit and loss is like driving without considering fuel (cash flow).
- Importance: Profitability alone is not enough; cash flow ensures the ability to meet financial obligations.
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Peter Drucker's Quote:
- Concept: Cash flow takes precedence over profit in a new enterprise.
- Importance: While profit is essential, the immediate liquidity provided by cash flow is crucial for success.
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Robert Kiyosaki's Quote:
- Concept: Effective cash flow management is more critical than making more money.
- Importance: Improving cash flow is essential for financial stability, regardless of revenue.
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David Tang's Quote:
- Concept: 'Negative cash flow' is dreaded in finance.
- Importance: Consistently having more outgoings than incomings can lead to financial distress.
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Jack Welch's Quote:
- Concept: Key business measurements include customer satisfaction, employee satisfaction, and cash flow.
- Importance: Cash flow is the pulse, reflecting the overall health of a company.
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Jeff Bezos's Quote:
- Concept: Maximizing absolute dollar free cash flow per share is crucial.
- Importance: Free cash flow directly correlates to available capital for business reinvestment.
-
Warren Buffett's Quote:
- Concept: Long-term debt can negatively impact company profits and future cash flows.
- Importance: Managing debt, especially long-term debt, is vital for predictable cash flows.
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Chris Chocola's Quote:
- Concept: Balance sheets and income statements are fictional; cash flow is reality.
- Importance: Cash flow movements provide concrete, factual information about a company's financial health.
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Grant Cardone's Quote:
- Concept: Use debt to leverage investments and grow cash flows strategically.
- Importance: Strategic debt utilization can contribute to the growth and sustainability of cash flows.
In summary, these quotes collectively emphasize the centrality of cash flow in business operations, financial decision-making, and long-term success. As an expert, I encourage businesses to recognize the significance of maintaining a healthy cash flow and leverage innovative cash automation software, such as Cashbook, to achieve financial resilience and growth.
