Polo is the game of Kings but Cash is the King of business. Running out of the stuff is a bad thing but so many new business do just that. There are tools to managing cash and we need to know the formula.
“Cash is king, other People’s Money, Spend less than you earn”; we’ve heard them all before. Professional mentors will throw these at you, you will write them down, and then go back to business and forget them all. Being self employed is not easy. Being a start-up entrepreneur is not easy. No matter what you read on the internet and no matter what you may think about all the “other” people who are super successful–they’re probably not. You are also only seeing the top of the heap. There’s a lot of debris below that heap.
Over 90 percent of all businesses fail in the first five years. Did you know that? Did you know that most of those are in year 1 & 2? Did you also know that the vast majority never earn more than a £1 million? With chances like that, why bother. Why take the plunge only to fail and be ridiculed?
You’re in business to grow. Most business startups fail for many reasons, but the one that is first and foremost at the top of any list is running out of cash. This may seem obvious to you, but you’d be surprised how easy it is to do.
If your business is growing it will require cash. It will eat cash like a kid devours sugary cereal. You will need more inventory, more staff, more everything. So plan for growth from the beginning.
Know the difference between your PL and Cash flow statement. Cash flow is not profit and profit is not cash flow. You may easily have good margins and be turning a profit, but you may be eating through cash. You may have poor collections, or suppliers my require fast payment, or you may have cap ex which stands outside the PL statement but will hit cash hard.
It may sound corny but if you think about this and do this every day you will have a successful cash flow business; the super formula is simply this: “Buy Low, Sell High, Pay Late and Collect Early.” Job done. Try it. It’s not easy. Get it right and cash is king will guide you along your growth.
I’m a seasoned start-up entrepreneur and CEO and property financier who built built businesses worth over $200 million. Since 1992, I helped start a number of large scale businesses including a bank credit department, a mortgage company, and I built the largest single-branded real estate company across five countries in Central Europe. I also developed a portfolio of shopping centers and hypermarkets in Eastern Europe, constructing over two million square feet of retail space.
Today I am involved in the entrepreneur community, trying to share what I’ve learned and I serve as a mentor for startups.
I have authored a new business startup report called “How To Start A Business”. This shows you how to find, enter and profit immediately from a high demand market with virtually no competition… what I call a Blue-Sky Market!
This is how I could turn £400 into £50,000 in just 8 weeks.
Blue-Sky Markets are all around us. You just have to know where to look and have the courage to do things a little different.
To grab your free copy just click the link below: