The Cash Flow Story In A Tiny Texas Town

Denise O'Berry — Mon, 28 Dec 2009 12:21:05 +0000

Watching cash flow through a community is interesting. This story landed in my email box — the result of viral movement of an interesting story. I don’t know who the original author is, but I would love to. If you know, please share. But in the meantime, enjoy!

It’s a slow day in the little Texas town of Port O’Connor. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich tourist from back east is driving through. He stops at the motel and lays a $100 bill on the desk and says he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer’s Co-op takes the $100 and runs to pay his debt to the local mechanic, who has also been facing hard times and has had to offer his “services” on credit.

The mechanic rushes to the hotel and pays off his room bill with the hotel owner.

The hotel proprietor then places the $100 back on the counter.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything.

However, the whole town is now out of debt and looks to the future with a lot more optimism.

What do you think? Is this how it works? Share your thoughts by leaving a comment below.

Are You Breaking Even or Dealing With Cash Flow Woes?

Denise O'Berry — Fri, 28 Nov 2008 02:32:57 +0000

We’re staring down the end of the last quarter of the year. How have you done? What’s the minimum revenue your business must have each month to break even? To make a profit? Amazingly, many business owners have no idea. They plod along, looking at the balance in the checkbook to make sure there’s still money left.

You won’t get ahead in your business managing your finances on a wing and a prayer. So where do you start? Sit down and figure out your fixed expenses for each month. Things like phone service, electric, salaries and supplies. Add them all together (don’t forget taxes to the government) and that’s the minimum amount of revenue you must bring in each month. Take the guesswork out of it. Know where you’re at and where you want to be. Involve your staff (if you have some!) in helping you be successful.

What about you? Do you know the state of your cash flow? Please leave a comment.

Small Business Cash Flow » break even

The Cash Flow Story In A Tiny Texas Town

Are You Breaking Even or Dealing With Cash Flow Woes?