Happiness is a Positive Cash Flow – Some More Information
Do you understand blood? Perhaps not, but you know that your body needs it or you will die. The same with cash – your business needs cash or it will die. However, unlike blood, you need to understand the flows of cash.
- Fact: A growing business is always short of cash
- Fact: A declining business usually starts its decline with a spurt of cash
- Fact: You will have the most cash ever in your business when you liquidate
- Fact: It is easier to obtain loans when you don’t need the money than when you do
- Fact: Most businesses do not apply for a loan until they need the money
- Fact: Profits don’t mean anything if they are not represented by cash
- Fact: Cash has to be managed
Cash flow is the movement of cash in and out of the business.
Everything you learned about balance sheets and profits is a myth if you cannot write a check to pay your employees’ salaries, your rent or your salary.
Happiness is a positive cash flow. Manage your cash flow successfully and you will be happy.
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