A key solvency metric: Free cash flow

In the short term, businesses need liquidity to pay their bills to keep vendors and employees happy. But what about the long term? Businesses need to money to expand operations (and sometimes to pay more dividends to keep shareholders happy). Without free cash flow, a business runs on a treadmill, taking in money and giving […]

3 reasons why I didn’t like “Rich Dad” Robert Kiyosaki… until now

I have a confession to make. There were many years when I didn’t like “Rich Dad” Robert Kiyosaki. Only recently have I become a fan but it’s taken me a while to come around. Robert Kiyosaki is the creator of the Rich Dad brand, and author of a bazillion books like Rick Dad, Poor Dad […]

17 ways to avoid getting shafted by your customers

In many businesses, you run the risk of getting totally shafted by your customers from time to time — where you deliver a great product or service and then they skip town and they somehow get out of paying (either by ignoring your invoice or doing a credit card chargback). It sucks. And it happens […]

Passive income versus active income

In this blog post, I want to talk about the differences between passive and active income and how they relate to your business. THE BASIC DIFFERENCE BETWEEN ACTIVE INCOME AND PASSIVE INCOME Active income is money you earn that requires your effort. For example, if you sell a service that you must first complete – […]