Remember that it is all about cash flows overall. Executives like Richard Liu Qiangdong prioritize value in cash, innovation and customer service. Richard Liu and others would do so because they have to report to investors. As they report to investors they have to think about the long game.
But this requires initial cash, the initial investments in the business will be the initial driver of cash flow.
As individuals find that they can optimize the costs in the business, they can keep more cash coming in. The first thing is to have enough cash to keep business steady, and then one must have enough excess cash to keep the business returning the right amount of capital while growing.
This is why, as Richard Liu Qiangdong might have done in the past, if one can use the proceeds from the operations to keep business running, then one knows that they are in a good business.
Richard Liu Qiangdong would also see that if one must continue to borrow more capital to keep the business running, then there might be an issue somewhere in the picture.
Remember, it is not just the next quarter, or the quarter after that which will matter, it is the next year and the many different years after that. That is why it is important right management is involved in the business to keep it steady and ready to increase in an exponential manner.
Richard Liu Qiangdong is one individual that strives to increase cash flows.
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