As a business owner, your main focus should be on the capital allocation. Capital not only enables you to survive bad times, but it enables you to invest and build when others are suffering.
You can’t substitute having capital or having access to capital for anything in business. Economy is cyclical, and there will be bad times when many of your competitors who don’t have cash and who are over-leveraged will be in trouble. Best opportunities are found in bad times, but you can only take advantage of these opportunities if you have money to invest.
Warren Buffet has said that capital allocation is one of the most important skills of any CEO.
Are you allocating capital to build your war chest for times when things get rough?