18 Aug 2010
Could You Make $6 Billion & Still Be Bankrupt?
Rhondalynn Korolak, Author of "Financial Foreplay®" and "On The Shoulders of Giants
If you’re a small-mid size business owner and struggling to make your operation both profitable and cash flow positive, don’t beat yourself up too much! Even some of the largest corporations in this country are getting it wrong and stuffing up every day. Take the CBA for example – one of the largest banks in Australia recently announced a $6 billion profit for 2009-10. To put this in context, this equates to around a 17 per cent return on investors’ funds, which is impressive indeed in these tough economic times.
Too bad the CBA is technically bankrupt – meaning they don’t have enough liquid assets to cover the debt as it is coming due.
But how can this be, you might ask? The answer is simpler than you might think and it applies to ALL companies (big and small) – Profit is pointless and cash flow is KING! More businesses in Australia go under every year due to lack of cash flow than any other single reason. No business, even financial institutions which are afforded many governmental protections and safeguards, are exempt from this basic law of the economic jungle.
Read More
18 Aug 2010
Could You Make $6 Billion & Still Be Bankrupt?
Rhondalynn Korolak, Author of "Financial Foreplay®" and "On The Shoulders of Giants
If you’re a small-mid size business owner and struggling to make your operation both profitable and cash flow positive, don’t beat yourself up too much! Even some of the largest corporations in this country are getting it wrong and stuffing up every day. Take the CBA for example – one of the largest banks in Australia recently announced a $6 billion profit for 2009-10. To put this in context, this equates to around a 17 per cent return on investors’ funds, which is impressive indeed in these tough economic times.
Too bad the CBA is technically bankrupt – meaning they don’t have enough liquid assets to cover the debt as it is coming due.
But how can this be, you might ask? The answer is simpler than you might think and it applies to ALL companies (big and small) – Profit is pointless and cash flow is KING! More businesses in Australia go under every year due to lack of cash flow than any other single reason. No business, even financial institutions which are afforded many governmental protections and safeguards, are exempt from this basic law of the economic jungle.
Read More
30 Mar 2010
Are You Trying To Make the EASY Way Look Hard?
Rhondalynn Korolak, Author of "Financial Foreplay®" and "On The Shoulders of Giants
What if I told you that YOU are you’re own worst enemy? Would you be offended or would you smile and agree, because you know it’s true. It’s true for ALL of us.
You can tell a lot about a business person by the way they spend their time. We all spend our time in various ways. Many business owners and senior executives tell me that there is not enough time in the day to get everything done. Personally, I have a belief that there is always enough time in the day to do all of the things that are WORTH doing. The key is to identify what is worth your while.
Sometimes activity can be a kind of anesthesia for the pain of not achieving the results you want and deserve. Action is always better than procrastination. However, more activity is not always better than less.
