Today is the day ,
I have learned one life lesson by paying $74,000 as a tuition fee.
It is pretty expensive tuition 🤔🤔🤔🤔.
Initially I was excited, When we became sub vendor for one of the Largest Investment Bank in the world (i.e Lehman Brothers).
12 years back Today I.e Sep 15th 2008.
I came to know that our dream client(Lehman Brothers) filed bankruptcy.
Although I was not aware of the impact on our account receivable at that moment. The effects showed up later.
Due to this our cash flows got effected. We were not able to make our payable on time.
It became little chaos.
To get back on track I had to manage our expenses and also change our payroll cycles. In next few months I was able to bring back the cash flows on track.
This is how I learned Cash Flow Management in the business.
We lost $74,000 as account receivable from our dream client because of this bankruptcy.
to convert this into positive experience I said to my self not to treat this as loss.
So In my mind I accounted it as tuition fee to learn Cash Flow management.
My two cents :
Don't expect your clients to pay on time. Plan your cash flows accordingly.