Lydia remembered a year ago. “We brought in our Balance Sheets,” she described. “I used to spend time poring over my Income Statement, so understanding the Balance Sheet, I mean, really paying attention to the Balance Sheet, was new to me.”

“Why did we do that?” I asked.

“You said that we could still make a profit and go out of business. That, making a profit was important, but elements on the Balance Sheet could be fatal.”

“So, what did we focus on?”

“Liquidity. Liquidity. Liquidity,” Lydia recited. “Cash, cash flow, accounts receivable, credit.”

“And why did we start working on this two years ago?” I reminded her.

“You said if we got to where we are, now, and needed a Line of Credit, the bank would not give us one. Because banks never give you credit when you need it, they only give you credit when you don’t need it.”