‘ Atmanirbhar Bharat ‘ from which everyone is well-aware.The very popular politician Mr. Narendra Modi ( The Prime Minister of India ) dreamed and addressed the nation towards making India self-reliant.
Companies are retrenching their employees after the Corona epidemic. Employees are being fired from the company.
People are planning for their own work. They are in the process of starting their own business. But as we’ve always said that it may not be difficult to starting a business, but it’s not easy to make it sustainable.
Therefore, today I will discuss the first and most important rule of business which is to ‘ preserve cash ‘.
‘ Preserve cash ‘ This is the no. 1 rule for starting the business.
If you can lease then why buy if you can rent then why lease if you can borrow then why rent? Always choose short-term borrowing over long-term borrowing.
If you’re in the logistics business then never buy a new carriage, always buy used carriage. Always prefer used furniture in your offices.
Remember cheap offices yields to great profit.
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Your cash will vanish drastically if you prefer first-class products. With no cash to meet day-to-day expenses, businesses are attracted to loans. They get into debt which is like a hole in a boat.
Never expose your cash to brand new products. They say cash is king in business. If your business is struggling with cash shortages, it’ll go broke.
Business expansion plans require sufficient cash. Opportunities come suddenly. Having cash is like a warrior holding a weapon.
A lot of problems businesses face which are required to be handle properly. Cash plays an important role in handling these problems.
Sometimes, a very attractive offer for acquisitions and mergers comes to businesses. It is necessary to have enough cash to grab such an opportunity.
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Cash becomes very important in case of financial turmoil. Cash provides a shield in undesirable situations.
A very common mistake most people make when starting a business is that they maintain heavy inventories to achieve economies of scale. Later this proves to be a big mistake because the future is always uncertain whether it is in personal life or business.
The weak points of your products or services that you are offering are often left untouched by your analysis, which later leads to failure.
Start small and expand it gradually. Preserve cash.
‘ Slow and steady wins the race! ‘
The Bottom Line
Making money from money requires financial knowledge. Maintaining balance is very important to achieve financial independence.
Be it a personal life or business preserving cash is very significant.
Stay away from debt otherwise it becomes difficult to survive in a difficult situation. The only thing which can help in situations where you need cash is cash. You can be innovative if you have enough cash.
So, that’s all for this session. Hope you learned a lot and enjoy this blog ( The #1 rule for starting the business! ). If you like this blog ( The #1 rule for starting the business! ) spread my efforts on social media.