522: How to Improve Cashflow During a Crisis

Everybody. This is Steli Efti. And this is Heaton Shaw, and I'm gonna let you say it, Steli. Cash is king. I think we like talking about more than just sales and marketing. We just wanna bullshit and chat about business and life. And, hopefully, while we're doing that, provide a lot of value to people. The world's best business podcast. Oh. Oh, shit. For people trying to get shit done. Yeah. We don't wanna give you feedback that's bullshit. And we want you to do your best. Yes. So that's what we're gonna talk about on the start up chat today. And, yeah, wow, like, that that statement is more true than ever. Never is cash more king than during a crisis. Right? I mean, it's always king, but during difficult times, even more so. So, you know, we thought it might be useful for us to just share a couple of things that we have either done ourselves with our businesses or have seen others do successful during these times in order to improve their cash positions, to improve their cash flow, to just, you know, strengthen their companies and their start ups to financially be able to make it through whatever rough waters we still have ahead of us. Right? So for you, if I come to you, Heaton, and I'm like, hey. You know, I have a start up with revenue, with customers, with cost. We need to improve our cash flow position. What are kind of the go to tips that you would give? I know that this is you know, every case is different. But in general, what what's some of the things that you've seen people do or you've done yourselves with your companies that can make a big difference during these times on improving cash flow? Yeah. I mean, you know oh god. The reason I say that sorry, god. But is, wow. There are founders and business people out there that say that have said they get confused when they look at a p and l, a profit and loss statement. Mhmm. So step one, stop saying that. Just just I don't like, it's not a tool you need. You just need to go spend the time, get your P and L for dummies book or whatever, and learn how to read a P and L. It is not hard. Full stop. Period. I could teach my 10 year old how to read a P and L if I needed to. And so I know I'm getting a little serious about this shit, but, like, man, I I get so frustrated when I hear someone tell me that they're a business person. They're responsible for cash, and they say that the PNL or whatever, accounting statements or whatever confuses them. It's like, okay. Well, it's your responsibility. This is your job. Managing cash is your job. Even if you have a finance person or whatever, you know, happen to be lucky …