Financial Freedom – So What! – Then What?

Financial Freedom – So What! – Then What?

I set myself a goal, sometime ago after reading several “business success” books.

All the books I read seemed to have a theme running through them.

That theme, was heavily endorsed when I went to business seminars and networking events.

The Goal –

Financial Freedom! (or retirement) – a passive income that would generate wealth, even without me having to be present from 9-5.

I’ve never really launched myself into that goal.

I began to think that the Financial Freedom = Happiness, theory is a myth.   We talk about it as if it would be the solution to all our problems, it’s not!

Continue reading “Financial Freedom – So What! – Then What?”

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Time to Wake Up and Smell the Tea!

We have a cash-flow problem, shall we reduce our margin to drive sales volumes?

Cash-flow management is about how money flows into and out of your business over-time. There are three types of cash flow – operational, investment, and financing – and the one of interest here is operational cash flow. Cash-flows in from sales, and out in payment of bills, including supplier invoices, wages and rents.

Margins need to be high enough to leave sufficient cash to pay all these and the timing of inflows and outflows needs to be managed to make sure enough cash is there at the right time.

By discounting margins to drive sales, you risk not having enough cash left to pay all these bills. This is a common problem with businesses at the moment, with everyone discounting like mad to try to maintain sales, resulting in insufficient cash to pay salaries and rents. People are literally buying the work to stay afloat.

Continue reading “Time to Wake Up and Smell the Tea!”