Theo Paphitis Quotes

If you don’t balance your budget in business, you go out of business.

Cash flow is a problem for a small and developing company, and the lack of it is the reason why many small businesses fail. Ensure that you have enough money in your bank account to make you able to carry out daily basic needs for your business.

You have to manage money. Particularly with market economies. You may have a great product, but if your bottom line goes bust, then that's it.

You know what kind of companies generally survive? Companies that make more money than they spend. I know, duh, right?

Cash is the lifeblood of your business. There are very few things in business that will kill you, but running our of cash is one of those things. You can recover from almost any other mistake, but if you run out of cash you're dead.

Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent... When bills come due, only cash is legal tender. Don't leave home without it.

I think for any small business that's bootstrapped, the overwhelming challenge initially is getting to positive cash flow.

You can't operate a business running at a loss, and particularly if you're doing it by paying yourselves. It just doesn't fly.

Profit or perish... There are only two ways to make money: increase sales and decrease costs.

The Profit and Loss Statement tells you a lot about how your business is doing. It can also help you to determine ways that you can go about saving money so that you get to bring more money home! Basically, the P&L statement measures all of your income sources verses all your business expenses for any given period of time.

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.

Small businesses have told us that having cash in their pocket is one of the primary things that they need.

Most entrepreneurs come up with a product, or they come up with an idea and they think they can be successful with it. But if they don't know the financial side of their business and understand credit and working capital and what it takes money-wise, you can't be successful. The product is just a product.

The first aspect of a business that you need to make it work well is money. Once the money aspect is flowing, you can freely work on other aspects.

Why can't modern tech companies both grow and turn a profit at the same time?

I've certainly learnt there's nothing more important than cash - cash flow issues are one of the biggest causes of company failures.

I get by mostly on speaking engagements, but as soon as I try to pay myself, I end up having to give it back to the business to cover operating expenses or other unplanned costs.

You will always need more capital than you think, because it will always take you longer to reach profitability than you can imagine.

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.

I was in the world of business for 25 years. If you didn't balance your budget, you went out of business.

If companies don't know that they can run out of money, they won't be thinking of ways not to run out of money.

You can't run a business based on sympathies; otherwise our business would be hampered.

Every family in America knows they have to do a budget. Every small business in America knows they have to do a budget. Every local government, every state, knows they have to do a budget.

No matter what business you're in, business is business, and financing and money are critical. I would have made a lot fewer mistakes if I had more schooling in that area.

If it took seven days to make a living with a restaurant, then we needed to be in some other line of work.