When I hang out with my friends, the conversation often goes to business (unless it’s about kids, real estate, dogs, cooking/eating, or real estate).  I guess we actually talk about a whole lot of things.

The conversation over drinks & appies at a local upscale eatery today was about a business that a relative of a friend had started.  They had brilliant and innovative products.  In fact, a year before they had predicted that the business would sell for hundreds of millions of dollars in just 2 years.  It’s a year later now and they can’t pay their bills.

But, it’s not due to some doom and gloom downturn.  In fact, the talk at the company is all about the huge cash windfall they’re going to get later this year.  It’s a case of “next year” for the dreams.

And they might just get that, someday, if they can only survive tomorrow.

Is more cash the answer?  No.  The answer is focussing resources on paying the bills today and continuing to work to the future.  

The rule of thumb that I’ve always used is to have 80% of the company resources going toward something that will bring in cash within the next 90 days.

I need to keep reminding myself of that as well.  My desk is piled with work that I need to do that brings in cash right away, but I find myself working on the website project because it’s more interesting.

Its a good reminder to me!