Sow a thought!

How Stoic are you?

Wed, 15 Dec 2021 18:23:57 GMT

How Stoic are You?

Here are 4 quotes from the Stoic masters!

Today I escaped from anxiety. Or no, I discarded it, because it was within me, in my perceptions, not outside. Marcus Aurelius

Difficulties strengthen the mind as labor does the body. Seneca

We should always be asking ourselves: Is this something that is, or is not, in my control? Epictetus

We suffer more often in imagination than in reality. Seneca

Six Honest Serving Men!

Wed, 12 May 2021 19:28:58 GMT

Six Honest Serving Men

I keep six honest serving-men
(They taught me all I knew);
Their names are What and Why and When
And How and Where and Who.
I send them over land and sea,
I send them east and west;
But after they have worked for me,
I give them all a rest.

I let them rest from nine till five,
For I am busy then,
As well as breakfast, lunch, and tea,
For they are hungry men.
But different folk have different views;
I know a person small
She keeps ten million serving-men,
Who get no rest at all!
She sends em abroad on her own affairs,
From the second she opens her eyes
One million Hows, Two million Wheres,
And seven million Whys!

Rudyard Kipling

Cash Flow

Fri, 23 Apr 2021 18:03:56 GMT

Why Cash is King

Most new folks in business and even some established business people run their businesses using gut feelings on a day to day basis. They look at their sales and they look at their deposits, and if all is well such as a positive amount of cash in the bank, then all is good!

Then on to the next item, such as maybe calling a customer, checking or pricing inventory and getting absorbed in the running of the day to day business. More often than not something will distract the process, and the next step will be to attend to the distraction. Before you know it the day is over and you prepare to close. You say to yourself, I will catch up on the books when I get home, or maybe tomorrow or the weekend, if I am feeling too tired.

Of course, when you get home there are important things to attend, dinner to prepare and kids to feed, homework to supervise and when all is done, it is time for bed because you are exhausted. Ok, so tomorrow is another day!

Why I bring this up is because it is a really a common occurrence in the day of the life of a business person. What actually happens is that proactive planning is replaced by reactive responses, as and when things occur.

So what has all this to do with Cash Flow?

Cash Flow, or more importantly Free Cash Flow is the result of proper planning and taking the correct steps to ensure that your business decisions lead to the correct results. Free Cash Flow means having cash available to pay back investors or grow the business further. Unlike earnings or net income , free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement but includes spending on equipment and assets as well as changes in working capital from the balance sheet .

Because FCF accounts for changes in working capital, it can provide important insigh ts into the value of your company and the health of its fundamental trends. For example, a decrease in accounts payable (outflow) could mean that vendors are requiring faster payment. A decrease in accounts receivable (inflow) could mean the company is collecting cash from its customers quicker. An increase in inventory (outflow) could indicate a building stockpile of unsold products. Including working capital in a measure of profitability provides an insight that is missing from the income statement.

So what this all means is that the owner has to pay attention, not just to the bank deposits or the daily payouts for expenses but also to the composition of the balance sheet as well as the gross margins on sales and any payments due for long term debts etc.

You may say that it is more important to take care of your customer because without your customer there is no business. I agree 100%. However, without proper management of the finances and understanding of the implications of your various decisions, there very well may be a short lived business rather than a growing profitable concern that increases in value over the long term.

The best 'bang for your buck' is to have an advisor help you or a professional manage the financial aspects and keep proper records for you, so you can get on with the running of the business. Call me if you would like to chat!

Strategy

Wed, 14 Apr 2021 20:12:30 GMT

Strategy

Good strategy is not about what our actions do, but how others see and react to our actions.

Be Here Now

Mon, 12 Apr 2021 17:03:07 GMT

Live in the Moment

You cannot change the past....so accept it! You can plan for the future but Life has a way of interfering! So keep focused on the present moment and put all your energy into it ......then let things fall into place, naturally!

Sow a thought!

Tue, 06 Apr 2021 19:58:10 GMT

Sow a Thought

Sow a Thought, Reap an Action

Sow an Action, Reap a Habit,

Sow a Habit, Reap a Character,

Sow a Character, Reap a Destiny!

Building Your Credit

Mon, 05 Apr 2021 15:02:07 GMT

How to build your personal credit

Monitoring and building good credit can be challenging!

Those pesky Credit Bureaus!

How to build your personal credit

If the credit bureaus, and there are three of them, namely Equifax, Transunion and Experian, give you a low credit score you can bet that credit card companies love the opportunity to charge you extra fees and a higher interest rate. They base their charges on your score. A high score gives you cheaper access to credit and of course the opposite is true.

So here are some rules of thumb that will help:

If you have to have a credit card try to use it as a charge card, which means pay it in full each month.
If you cannot pay in full each month then do not spend more than a maximum of 30% of your credit limit. So if you have a $1500 credit limit on a card, only spend up to $500 max.
Try to have no more than three credit cards.
Always pay on time and never go over thirty days. If you do not pay on time you will get a late fee which will have the effect of not reducing your balance.
When you can, try to avoid credit cards altogether.

Protect yourself with a Legal Entity.

sites@tailorbrands.com — Mon, 16 Sep 2019 14:56:57 GMT

Should you create an LLC?

American society is extremely litigious. Lawyers love it because it makes them rich! Since you probably cannot change this fact, it will be helpful to protect yourself from legal action.

Please note. I am not a lawyer. All my comments are based on my own personal experiences over the last 30+ years. My experiences are not the same as yours. Please contact your own legal professional when making decisions that can affect you legally.

Whether you are about to start a business or have been operating as a sole proprietor or a partnership, you probably want to know: How do I know if I need an LLC?

When choosing the form of your business, numerous considerations come into play, including personal liability, ownership, and management, cost of forming and registering the business, and taxation. Reasons you might want an LLC include:

Limiting your personal liability for business debts . With an LLC, only the assets owned in the name of the LLC are subject to the claims of business creditors, including lawsuits against the business. The personal assets of the LLC members cannot be claimed to satisfy business debts. For most people, this is the most important reason to form an LLC.
Raising capital from investors . This can be done by bringing in other members who contribute funds, property, or services to the business.
Tax advantages . There is usually no separate tax levied on the LLC itself, as there may be with a corporation. LLC profits or losses are generally passed on to the members, as they would be with a partnership.

You should also compare your state's fees associated with both LLCs and corporations, to see if one or the other is less expensive to form and maintain. Also, you should consider what your state requires in the way of holding meetings of the members, and annual reporting.

For more information and legal help, contact Legal Zoom .