How to finance business Like Buffett

the key to business intelligence. How to focus on the cash in business. Cash is Blood..where are the Blood Clots in your business and how to deal with them you too can Learn Accounting Fast

Hi welcome to learn accounting class come with businesses about small money in big money app we focus on the importance of cash and how cash flows through the business the process of using the cash to produce a product or service and how big money must come out the other end so welcome to part 2 of wet in the blood clot okay now what does this mean just this what

Does this mean that means for small money to go in big money to come out your minimum return on capital must you are so in a lot of company this investment must what this is the average cost of regular the cost of owners capital equity is 15% the cause of lenders loan is what the average cost of the capital is what does it make sense this cost 15 this one therefore

You take 40 divided by 300 to get that way every project that you goes in must earn a return of how much in other words the profit divided by the investment must be what then it is small money going in big money coming oh all right now now that you have this you are ready now for the process the money now goes into the business you can see the money begin to change

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Color he goes here when it comes out it becomes what blue it becomes a pro doc all right and the product becomes like change to become in business liquid money rate money goes in becomes what solid money product product becomes what when every time it changed from red to blue to red it must go isn’t it right so what if this is liquid money what is a product why

Do we have to make into a product all we want is money isn’t it money changing from i got money i put in it okay so what is this one liquid form this is what this is cash business then one dollar has become dollars accounting this one is it simple this principle a very now normally product that comes out become there does not become cash immediately what happened

Where did he go what is this why is it called stalk the name we call it i said i said this is a 1 billion i said how long does he stays there in the in the warehouse huh one monotreme on over to give lon three months you stay here for three months and then what happened it turns into doesn’t end the money yet this is customer that didn’t pay you yet customers who

Don’t pay you it’s called what that tall this is also a nice saturday how much ah two billion is it more than that how many months take the pay normally one man okay and then what he becomes then he becomes what rate see cash business cash turn to blue turn to rate credit business go here stay here right if blood cash is blood blood mass if blood that doesn’t flow

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Is going on this is a blood clot when you have blood clot like that what happened what is this still only watch this what right you get back thirteen point two percent three billion how much does it cost you to sit there for three months i said is he oh yeah oh yeah how much is it thirteen point three three billion four point five how much it million this is the

Reason why your company has no money even though you you you make so much profit is because your money is one and this will kill you faster so whose money is your money or the customers money sitting in whose bank is this money moving what is this if it is a blood clot what you do you get this plus this so watch out for the wet and remember cash is blood business

Is about small money in and big money out look for the blood clots in your business focus on the cash go beyond the numbers look for the blood clots and focus on the big-ticket items

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How to finance business Like Buffett By learnaccountingfast