When structured correctly, team ownership creates cash flow for the entrepreneur while rewarding the team for creating value.
Finance
Category: Finance
Finance
Cashflow
I always heard about cashflow being the most important thing to look at in a business. When the sales for solar hot water increased, we had to put some cash into the business to finance that growth. I then made a decision that I always wanted to create businesses that are cashflow positive throughout the development. So before starting to sell solar panels (which cost over $10,000 – of which the government paid around 90%), we said that we would only sell to clients who were willing to pay upfront and could wait for the government to pay them…
Finance
Urgent personal financial thoughts
Seth Godin wrote “Only borrow money to pay for things that increase in value. It’s a short list: your business, your house and your education, mostly. Stocks if you’re smarter than me. That’s pretty much it.” He goes on to say that the problem comes from credit card debt for consumer goods. And even if you then spend cash on more things, as long as you have a credit card debt, you are in fact buying things with money you have to pay large amounts of interest for. Have a look at his post for the strategies to overcome…
Finance
Raise Profits: Become More Sustainable
If you want to raise profits, becoming more sustainable is a great way to achieve that. This was probably the biggest message I got from the Sustainable Living Festival in Melbourne last weekend. And I also got a better insight into the most important step for becoming sustainable. Build Your Community At the very core of all companies that presented was the realisation that it is all about people. Rather than seeing staff as numbers who contribute to the bottom line, an appreciation of the individual and their contribution is needed. Tim Cotter, a psychologist showed that human values…