Tag Archives: cash flow

Creating Equity With Your Work

Business Success, Income Creation, , , , , ,

Marcus was elated when he opened the email from his client. His proposal to create the new brand images for the company had been accepted, and he was looking forward to working on the contract. This job, his most lucrative assignment to date, would help him to overcome some financial difficulties.

Marcus was consumed with designing various elements of his client’s marketing material; spending long hours conceiving the corporate images that would give the company an updated, modern image. He devoted all of his time and work effort into the creative process as he wanted to excel at the task.

Although he had bargained that the project would have been completed in six weeks, the adjustments requested by the company extended the time to three months. While Marcus was happy with the cash inflow from this big client, he realised that the amount of work he did was not reflected in his final bill. Continue reading Creating Equity With Your Work →

Business Owners, Watch Your Cash Flow!

Business Success, , , , , , , ,

Ambitious entrepreneurs will have the desire to achieve financial success by operating a business. However, the process of accomplishing this lofty objective is not a simple one. There are so many dynamics that need to be in place before running a business can lead to lasting wealth.

Statistics show that there is a high failure rate for new enterprises, and those that make it past the five-year mark may still find it difficult to attain and maintain profitability. Entrepreneurs have to be skilled in certain technical and theoretical disciplines in order to properly manage their businesses.

One of the critical skills that are often ignored or under-appreciated by many business persons is the ability to carry out fundamental accounting tasks. Some entrepreneurs believe that once they are experts in their fields of endeavour or they are good at doing sales, their businesses will flourish. Continue reading Business Owners, Watch Your Cash Flow! →

More Money: Use What You Have

Income Creation, , , , , , , ,

Patrick owned a small pharmacy that had been struggling in recent years. Rising overheads, declining sales and a burdensome debt situation were some of the factors that were crippling the cash flow and profitability of the business. Patrick was in a quandary – there wasn’t enough capital to either cease or continue operations.

To pay off long-standing bills and restock his store, Patrick tried to obtain additional financing, but his poor credit rating prevented him from getting another loan. In desperation, he decided that the only option to generate extra cash was to have a massive sale on most of the items that had been sitting in his establishment for a long time.

With little concern about the original cost of his ‘dead’ stock, Patrick slashed prices on all non-performing goods to J$1,000 and less. Then he put up sale signs and displayed some of the articles on a table outside the store. To his surprise, during the first week he made over J$40,000; and the increased traffic also boosted his sales of regularly-priced items in the store. Continue reading More Money: Use What You Have →

Money Alternatives

Spending, , , , , ,

A concern expressed by many people in these challenging economic times is that they just don’t have enough money to take care of their needs. While the supermarket tabs and the utility bills are constantly rising, the income amount remains static. It may therefore be difficult for the average person to find practical ways to get more money to offset this perpetual shortfall.

It seems that our lives are consumed by the never-ending pursuit of money. Employees work at jobs they dislike to receive a pay cheque; business owners sacrifice family and leisure time to increase profits; dishonest persons design schemes to acquire ill-gotten gains; and the authorities raise taxes to increase the flow into government’s coffers.

This financial reality led me to consider our need for money. The quotation from the hit musical Cabaret, “money makes the world go ’round” is very appropriate, as it almost feels like the Earth would grind to a screeching halt without the fuel of funds to keep it moving. How did money become such a central and indispensable part of our existence? Continue reading Money Alternatives →

Money Mission: Get Honest About Your Money

Money & Your Mind, , , , , , , ,

Debbie shared a quick joke with the postman as she took the bundle of letters from his hands. “I long for the day when I can get some money in the mail instead of just more bills!” she said with a chuckle. The postman laughed heartily as he rode away, “The only way money will come in the mail is if you start buying lottery tickets!” he retorted.

As she closed the gate, Debbie ruffled through the items that had just been delivered. There was correspondence from the furniture store from which she had bought a new Smart TV on hire purchase, a letter from a loan recovery agency, two more from companies she did not recognise, and a green and white slip which indicated that she had received registered mail.

With an irritated sigh, she distractedly pushed the pile of envelopes into her kitchen drawer which was already stuffed with unopened mail. “I wish they would stop sending these stupid payment requests,” she muttered to herself. “I need something to lift my spirits.” Grabbing her smart phone, she started composing a BB message to her best friend Althea. Continue reading Money Mission: Get Honest About Your Money →

Money Mission: Get Out of Debt

Debt, , , , , , ,

Over the past two months we have expanded on some of the key principles of money achievement that were outlined in our 2012 Money Manifesto.

Whether it’s budgeting, saving, setting goals, debt management, creating income, investing or estate planning, there are some basic steps that are non-negotiable if you want to create a successful financial future.

Of all the money principles I’ve identified, I think the one that proves the hardest to master is managing debt. I always receive the most heart-rending requests for help from persons who are desperate about their debt.

Uncontrolled borrowing can not only destroy the lives of individuals and their families, but devastate entire corporations and countries as well.

Continue reading Money Mission: Get Out of Debt →

What’s Your Net Worth Really Worth?

Wealth, , , , , , , , , ,

As we strive to move up the ladder of success, one of the benchmarks that we can use to gauge our progress is our net worth. Your net worth is a measure of your financial value which is calculated by subtracting your total liabilities from the total value of your assets. In essence, it is the net value of all the things you own, less all the things you owe.

According to T Harv Eker, best-selling author of the Secrets of the Millionaire Mind, net worth is a fundamental measure of wealth. Eker reveals that persons who are determined to be rich will focus their efforts on increasing their net worth.

So if one of your money goals for this year is to build your wealth, you should be paying close attention to your net worth. Continue reading What’s Your Net Worth Really Worth? →

Getting Started with Investing

Investing, , , , , , , , , , ,

Whenever I examine the topic of investing, I often receive responses from readers who want to learn more about how they can make their money work for them in some type of investment. It seems that while they have a desire to invest, many persons are unable to proceed because they just don’t know where to start.

When I first learnt about the concept of investing many years ago, I was initially hesitant about putting money into anything that couldn’t guarantee a positive return. While I understood about saving and receiving interest on my money, it seemed like a risky idea to commit my hard-earned funds into an endeavour, hoping that it would generate a profit.

I remember doing a training course that required the students to create a portfolio which included stock investments. At the time, I didn’t know anything about the stock market, and I was annoyed that I was being forced to invest in something that could lose money.

Very reluctantly, I placed 20 per cent of my ‘pretend’ funds on a few stock picks, and prepared for a disastrous result. Continue reading Getting Started with Investing →

Getting out of business debt

Business Success, , ,

“I’m desperately seeking a way to turn around my business. I’ve run up a lot of debt in trying to promote a new product, but sales are not coming in fast enough to cover my repayments.

“I am confident that I’m about to make a breakthrough as more customers are accepting my product, but I don’t know how I’m going to survive until that happens. I can’t give up now, as generating income from the business is the only way I can hope to get out of my debt. What can I do?”

The above quote tells the real-life scenario of a determined entrepreneur, who despite all her financial challenges continues to follow her business dream. She has a vision to revolutionize her industry with new technology, but like many young business owners, has underestimated what it would take to succeed.

Faced with escalating debt, she is anxious about her future and desperate to find solutions. Continue reading Getting out of business debt →

Four things that can destroy your business dream

Business Success, , , ,

“I’m struggling to find the right business venture that can guarantee me success. I tried running my own operation in two different industries, but I had to close down the businesses both times because they weren’t viable and I was losing money. I know it’s possible to make money in business, so what am I doing wrong?”

Many businesses suffer from varied problems that can undermine their viability. Lack of enough low-cost working capital, high production costs, competitive pressures, – the list goes on. When you think of all the challenges, it’s a miracle that so many people desire to be their own bosses!

Sometimes the underlying cause of issues that business owners face has less to do with a difficult economic environment, and more to do with the entrepreneurs’ own attitudes and practices. It’s easy to recognize the external issues contributing to business failure, but it’s harder to identify the negative habits that can destroy a business dream. Continue reading Four things that can destroy your business dream →