Financial Discipline Tenet
Business owners can either take profits out (for lifestyle or to diversify) or leave profits in (to fund growth and be recession proof).
We choose at Price to keep the vast majority of our earnings in the company to finance innovation and start-up losses internally, plus to make our business financially strong so as to be able to survive the left curves from a wildly fluctuating economy.
Price Points On Financial Discipline
01.
Have timely financial reporting
Good news can always wait—but bad news, especially if that news reflects in the financials, cannot come soon enough. Knowing monthly financials in real time is essential. The sooner you know your last month’s financials, the quicker you can respond to crisis.
02.
Secure small to medium contracts as a start-up
A proven strategy to succeed in a foreign market as a start-up is to be a low-cost producer with a product that can go head-to-head with a local low-cost producer. The objective is to remain viable with small to medium jobs; getting the major contracts is a bonus.
03.
Use financial reporting to calculate larger issues
Establishing timely financial flash reports saved the company’s Canadian operations during the Canadian collapse of the economy in the late 1980s to mid-1990s. The flash reports showed real-time awareness of the implosion of the Canadian market, which gave the company the information needed to create a survival plan.
E.H. Price: Foundation and Legacy
