Short pieces, one topic at a time.
- Money
The cash-bills ratio, and why it replaces your bank balance
The cash-bills ratio sets the cash you could spend today against the payments due now, so it shows whether you have money when your bank… - Money
Why one-for-one is a trap, and how much you must produce
To merely hold your standard of living, your business must produce well above what you take home. Covering exactly what you spend leads to… - Money
The weekly number that says if you are above the line
Your weekly number is the income the business needs each week to exist and promote. A week that ends below it shows you at once that you… - Money
Why every expense in your business has to buy something back
Every business expense must return more money than it cost. An expense whose return you cannot name is a hope, and the small ones are the… - Money
What a second pot is, and why it keeps your number true
A second pot is a separate place for money already owed elsewhere, such as sales tax, so the number in your main account shows how much is… - Money
When expenses pass income, why the order decides everything
When expenses pass income, the source gives a sequence whose order binds, and the costly mistake is starting at its end. Your credit rests… - Money
Four conditions of exchange: why fair is barely comfortable
Business and customer trade in one of four conditions. Most successful firms sit in the fair third, which is barely comfortable. Growth is… - Money
What solvency is, and why your bank balance can't tell you
Solvency is income greater than outgo plus making enough money, measured by two numbers: the cash you really hold against what you owe… - Money
What counts as income, and why promised money isn't yours
Income is only money you hold and can bank today. Money that was agreed but has not arrived, or money you owe someone else, is not your… - Money
Why the biggest loss in your business is not spending
The big loss in a business is the gap between what it could bring in and what it does, so cutting costs in a weak month works on the small…
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