How to run effective business
You don't necessarily need a Harvard economics degree to understand this simple fact: when you run a business, you have to be cashflow positive every month, otherwise you are forced to take the loan to run your operations or risk to operate with a credit line against your assets, like bank accounts or your home.
Three basic elements eating into your cashflow are: margin, people and tools of operation.
One of the Harvard professors said, that he wished you would never have to use what you learned in Harvard.
If you have a large margin in the product, you cover your mistakes and learn as you go.
My advice to you is simplify the accounting to cash basis to make sure math on cash makes sense and only then worry about GAAP accounting.
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You don't necessarily need a Harvard economics degree to understand this simple fact: when you run a business, you have to be cashflow positive every month, otherwise you are forced to take the loan to run your operations or risk to operate with a credit line against your assets, like bank accounts or your home.
Three basic elements eating into your cashflow are: margin, people and tools of operation.
One of the Harvard professors said, that he wished you would never have to use what you learned in Harvard.
If you have a large margin in the product, you cover your mistakes and learn as you go.
My advice to you is simplify the accounting to cash basis to make sure math on cash makes sense and only then worry about GAAP accounting.
Our social networks: