How to Get Rich

by Felix Dennis

You can improve cash flow by observing the following suggestions in a start-up’s early days: Keep payroll down to an absolute minimum. Overhead walks on two legs. Never sign long-term rent agreements or take upmarket office space. Never indulge in fancy office or reception furniture, unless your particular business demands that you make such an impression on clients. Never buy a business meal if the other side offers to. You can show off later. Pay yourself just enough to eat. Do not be shy to call customers who owe you money personally. It works. In a city, walk everywhere you can. It’s healthy and sets a good example. Check all staff travel and entertainment claims with an eagle eye. If you’re going to be late paying, call the vendor’s boss. Give a date. Stick to it. Always meet payroll, even at the expense of starving yourself that week. Issuing staff credit cards, company mobile phones or cars is the road to ruin. Leaving lights, computers, printers and copiers on overnight is just stupid. A vase of beautiful flowers in reception every week creates a better impression than £100,000 worth of fancy Italian furniture. Get used to grovelling. Grovelling is an effective tool in a start-up’s cash flow. They want your business. Play one supplier off against another. Ruthlessly. Only enter a factoring deal in absolute extremity. Exit it fast. Keep your chin up. It could be worse. You could be working for them.