Tag Archive for 'CEO management'

Three fundamentals of small business capitalization

The first sentence in the job description of every CEO should be, “Get the capital your company needs.”

Webster defines business capital as, “any asset, tangible or intangible, that is held for long-term investment.” Capital blended with operating cash flows becomes the financial fuel your company’s engine uses to operate with and fund growth.

•  Investment Capital — from you or someone else.

•  Borrowed Funds — for most small businesses, from a bank loan.

Additional capital is required just to STAY in business beyond what was necessary to START the business. And the stay-in-business capital is much more than the get-in-business capital. Success begets growth and growth eats capital like Cookie Monster eats chocolate chip cookies. So without a capitalization plan you can grow yourself out of business.

Here are three capital allocation guidelines.

1. Don’t use operating cash to purchase assets.

2. Don’t borrow money for operating expenses.

3. Funding growth with borrowed money is okay, if you have a plan to convert growth funding from debt to retained earnings.

Retained Earnings

As the CEO or your business, it’s your job to acquire, manage, allocate and maximize all sources of capital.


Jim Blasingame is the author of the new book,”The Age of the Customer: Prepare for the Moment of Relevance.

Three fundamentals of small business capitalization

The first sentence in the job description of every CEO should be, “Get the capital your company needs.”

Webster defines business capital as, “any asset, tangible or intangible, that is held for long-term investment.” Capital blended with operating cash flows becomes the financial fuel your company’s engine uses to operate with and fund growth.

•  Investment Capital — from you or someone else.

•  Borrowed Funds — for most small businesses, from a bank loan.

Additional capital is required just to STAY in business beyond what was necessary to START the business. And the stay-in-business capital is much more than the get-in-business capital. Success begets growth and growth eats capital like Cookie Monster eats chocolate chip cookies. So without a capitalization plan you can grow yourself out of business.

Here are three capital allocation guidelines. Don’t use operating cash to purchase assets. Don’t borrow money for operating expenses. Funding growth with borrowed money is okay, if you have a plan to convert growth funding from debt to retained earnings.

Retained Earnings

As the CEO or your business, it’s your job to acquire, manage, allocate and maximize all sources of capital.


Jim Blasingame is the author of the new book,”The Age of the Customer: Prepare for the Moment of Relevance.

How leading small business CEOs prepare for the recovery

Reading newspapers, magazines and online, watching the talking heads on TV or listening to the geniuses on the radio, when the topic is about economic recovery most of the coverage focuses on the national or global situation.  And if you’re a stock trader or run a national or global company, this information is likely to be valuable.

But if you’re a small business CEO, the talking head noise must not distract you from the dealing with the reality that your economic recovery is influenced most by what’s going on in two much smaller pieces of geography:

1.  Within a few miles of your business: Your ability to serve real customers whose names you know, not the ones represented in statistical references.

2.  Within the space between your ears: Get out of your own way and execute as if there was no bad news.

Recently, on my small business radio program, The Small Business Advocate Show, I talked with Vistage leader, Stephen Baum, about how leading small business CEOs he knows are preparing for the recovery. Stephen has been a member of my Brain Trust for a number of years and is an adviser and coach to CEOs for more than twenty years. He is also the author of, What Made Jack Welch Jack Welch.”

Be sure to take a few minutes to listen to my visit with this world-class management expert and be sure to leave your own thoughts. Listen Live! Download, Too!




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