Quails and Eagles – A cash flow foundation

Jun 11

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I recently had the opportunity to meet with a friend to discuss the state of his business. A sudden post- ponement of a big job had caused some concern over the health and ‘cash fitness’ of his venture.  A few minutes around the white board revealed he was missing a vital element. He’s very good at what he does and was focussing a large amount of attention on what I would call Eagles – high flying opportunities that represent both good turn over and profit. However, between these lofty projects there were gaps in cash flow and productivity.

It became evident that the operation had bypassed building a foundation of regular sales equalling regular cash flow – the answer to regular bills. He had an architectural structure without the necessary footing. This trapeze act was working without a safety net.

I pointed out that while they were looking for Eagles they weren’t dedicating time to scooping up the Quails that were all around them. These small, ground dwelling leads were the key to laying a cash flow foundation that would provide the stability required to speculate larger opportunities. Quails are more easily caught than Eagles.

I brought his staff together and pointed out that urgency was now a matter of urgency. Urgency in finding regular sales while they developed the strength required to stay aloft with the Eagles. The ‘Quail Sales’ were the key to filling in the gaps. There is nothing wrong with aiming high, but first master the basics. Each business model is different, with Eagle and Quail sale types being relative to the type of business, however these principles apply in most situations.

Quail sales are not a given – the Quail customer is still spending their hard earned money – and they’re not always loose change deals, however, they do tend to turn around on a penny compared to the titanic movements of large corporations that can lead to long, drawn out deals – Eagles.

Aim to have a balance of security and speculation. Load your ship evenly so as not to become front or back heavy and in danger of sinking. Take the time to get down in the dirt and lay a foundation before planning on sipping cocktails in the top floor board room. By doing this you will maintain cash flow consistency that will ensure your success.

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5 comments

  1. Nice post very informative is this your first blog? Also thanks for the connection on twitter I look forward to your tweets.

    • Simon Malcolm /

      Hi Tristan,

      Thanks for your comment. Yeah, just new to blogging. I’m glad you found my post informative.

      Tell me more about what you do.

      Simon.

  2. This is a great blog with nice informations. Will growing the bussines in the future. Thanks…

  3. Fantastic post. We are all enamored by what we perceive are our value proposition but, we overlook within reach value opportunities chasing the Eagles. I was equally guilty except now the Eagles are actually looking down upon me with food in beaks.

    Felix Nater, CSC

    • Simon Malcolm /

      Hi Felix,

      Thanks for your comment and it was good to meet you on Twitter as well. I look forward to keeping up with what you’ve got to say.

      Simon.

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