How to make sure that your hard-earned dollar stays with you
U.S. President Harry S. Truman made famous the one-liner, ‘The buck stops here’ to emphasize the point about where ultimate responsibility for a decision or action lay. With minor variations, Truman’s statement can be adapted to take on a different meaning; namely how can we ensure that ours and our company’s hard-earned dollars remain where they belong—safely within our care. Here are some suggested ways of ensuring the ‘bucks’ remains firmly under your control.
1. Develop a positive attitude towards finance.
Become the unofficial CFO (Chief Finance Officer) of your business—even if there’s someone already performing that task. You must keep your finger on the pulse of what’s happening in your business and your life. Even though there’s much to be gained by making use of the expertise of a qualified CFO, accountant, or other professional services, this does not mean that you should abrogate total responsibility. You stay in charge and give control to others. Instill an attitude among staff, that the job is not complete until it has been paid for. Through your demonstrated commitment to making sure the buck stays where you think it belongs, you will be contributing to a culture of financial consciousness and personal accountability within your organization.
2. Focus on cash flow.
Regular, consistent cash flow is the lifeblood of any
organization. Before the buck can stay with you, you first need to make sure that it’s flowing into your bank account. The efforts expended today should be to focus on achieving desired outcomes. And when it comes to effort, remember that doing your best may not be good enough. Rather, doing what’s necessary could be what’s called for. Only when the cash is flowing in need you be concerned about restricting its exit.
3. Be vigilant about cost-cutting.
Visualize your workplace as a sports stadium and the employees are the spectators watching what transpires. When you make ‘noises’ about the need to reduce costs, employees will be watching for indicators of your commitment—whether or not you ‘walk-the-talk’ and do as you say. When they see that you’re serious about what you say in relation to cost-cutting, only then will your initiative receive the support it needs to succeed. When your employees see you guarding against waste, chances are that they’ll embrace the idea, too. The one person’s behavior you can change is your own, so start there.
