Physical resources – Finances, facilities and equipment are the big 3 physical resources. If you don’t have enough money, you can’t start or sustain an organization. And one of the biggest expenses is providing adequate facilities and equipment for people to work in and with. Experienced managers learn that cash flow is king. It doesn’t matter how much customers owe you, it’s when their money enters your bank account so you can use it to sustain the organization. Failing to manage cash flow is the No. 1 reason for business failure. Too many business owners leave the money up to someone else and can easily get blind-sided when suddenly the money isn’t there to keep the doors open. And in a few rare, unfortunate cases, the person tracking the money embezzles or cooks the books, then you really are in trouble. Likewise nice facilities can be energizing, something to feel proud about, but also very expensive. The economy is always cyclical, and if you buy or lease really nice facilities when times are good, paying for them can be difficult or impossible in a downturn.