Every business that fails on cash flow fails while profitable.
Ronald Steinย startedย PTS Advanceย from a spare bedroom in 1995, supporting multi-billion dollar refineries with highly paid specialists who expected to be paid on time.
His clients paid net 30. Sometimes net 60.
Most founders would have borrowed to bridge the gap. Ronald went back to his clients and made them an offer instead: we will support you at low billing rates, but we need to be paid in net seven.
They said yes. He was saving them money. They were saving his business.
Thirty years later that company was the largest staffing firm in the Unitedย
States in its sector.
The lesson holds well beyond refineries. The terms of a deal are as important as the price of it, and the person willing to trade margin for timing often outlasts the one who holds out for the better number.
It is the same discipline we apply to property. An investment property does not need to win a beauty contest. It needs to perform โ and performance is as much about when the money arrives as how much of it there is.
Our sincere thanks to Ronald Stein for giving us his time and for sharing six decades of hard-won experience so openly. Guests like Ronald are the reason this podcast exists, and we are genuinely grateful.
Watch the full twenty-minute conversation:ย https://lnkd.in/dcBvdPJ8
Listen on Spotify:ย https://lnkd.in/ddQ-GDRU
We invest. We test. We scrutinise. We partner.
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