Here I go, back to the front. A few weeks ago I posted a Three Kings piece out of order. Today I pulled out the first one because it reiterates the cash is king idea I recently posted about. I originally wrote this about three years ago when I couldn’t go anywhere on the internet without seeing something about “making it” without any cash. There were a lot of internet marketers advertising their “secrets” to success. Five steps to this and three steps to that which will turn on a limitless income stream overnight without spending any money. Well, except for the cost of their $2997 class ($997 if you reserve now) that will teach you exactly how to do it. Don’t get me wrong, there are some great, legit internet marketers out there that I really respect and follow, but it seems to me that for every one legit marketer there are ten snake oil marketers playing with smoke and mirrors.
But I digress…
I like the number three – so does the human mind. So, this micro series will focus on three things, topics, issues, principles, skills, etc that I have learned in my career.
This first one is on three business universals. Of course, there are more than three, but what did I just say? Right…Since cash truly is king, let’s stick to three cash universals.
1. Cash is King – cash is your oxygen – cash is more important than your mother – well that is what my father-in-law says. If you can’t bring in more cash than you put out – you won’t be in business for very long. So, treat cash like royalty.
2. Dollars and cents are the only things you can deposit. The bank doesn’t accept margins or percentages. They might sound great in a presentation and look good on a spreadsheet but they mean nothing on a bank statement. Know what the numbers mean and how they translate into real cash values.
3. It takes cash to make cash. I don’t know why so many people want to argue this. Let me just look at a sales lead funnel that has an ad driving traffic to it as an example. I hear some people say they spent $10 on an ad and average $100 in sales. Followed by, “it costs nothing”…
How does that cost nothing? I guess to me the key word is “spent”. It cost $10 to earn $100. Therefore, you need $10 cash to net $90 profit in this scenario (probably less when you net out the real expenses). It is profitable, it is not losing money, but it does take money – that is a big distinction.
Talk Soon,
Kevin W @LEAP272
Owner-Operator
You have to leap if you want to live
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