How Much Do You Need?
Even if you know where to find money and how to obtain it, you also need to know how much you really need. Your dreams will quickly turn to nightmares if you underestimate your need for cash.
You don’t need a degree in accounting to read this section or Section Four of the Finding Money ebook or, for that matter, to run a business. If each time you come across pages of numbers you’re suddenly overtaken by an urge to do something else (similar, perhaps, to the feeling you have when it’s time to pay your taxes) take heart, you’re not alone. We’ve worked with hundreds of business owners, some even running very successful twenty Million dollar businesses who don’t know a debit from a credit and who, thank you very much, have no interest in learning.
What successful business owners do know, however, is how to read past the accounting-ese to determine the health and financial needs of their company. What they know is that the financial statements they look at bear little resemblance to the company they run day-to-day. Financial statements are about esoteric accounting concepts like assets, liabilities, revenues, expenses, and profits that have little to do with running your company day-to-day. What really matters is cash flow. Read on.
