Good Morning,

We are all in business in some way, shape or form. For some it is owning a business. For others is managing somebody else’s  business. Many are involved in condominium or homeowners associations. Still others lead volunteer organizations. Even if none of the above apply, each of us is responsible for our personal finances. I call this “Me Inc.”

All involve finances that must generate revenue and pay bills. Unfortunately, too many in each of the categories above do not understand their numbers. Individuals look at their checking account, say I have enough money and spend the money. Many leaders in the organizations receive financial reports monthly but pay no attention to them or really, don’t understand the story they tell. Some reports, unfortunately, do not present a true financial picture of where we are today but, more importantly, where we will be going in the future.  

Critical questions include:

• Do I have enough cash to pay my bills?
• Will I have enough cash to pay my bills going forward?
• If I decide to spend money, will I be generating enough cash to pay for it when the expenditure becomes due? This, also, goes for using a credit card, making time payments, using a line of credit or taking out a loan.
• If it looks like I might be seeing a shortage of funds going forward, how do I generate the cash to be able to pay for it? If I chose to not spend the money, how will it impact my business?

Take the time to review your numbers. Know your numbers and what they mean. Make your financial decisions based on the best available information. If the information is not available, find it. Ask questions. Yes, things will happen. Have a plan and be prepared.

On a not so serious note, enjoy the week.

Jim