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Internet Cash Flow-Finding A Cash Flow Business

Written by: Ron Knighton

Article Overview: After losing years of hard work and money in real estate, I decided to start a better cash flow business. There are many cash flow systems out there but none compare to what you can do with the internet. If your are interested in improving your cash flow, internet cash flow is the way to go.

Internet Cash Flow-Finding A Cash Flow Business

When I was investing in real estate, I always looked at a deal based on the cash flow. If the cash flow was not good, I stayed clear of the deal. When you are looking for a cash flow business, the same rule applies.

When the whole real estate market took a dive, so did my business model. I learned very quickly that the rules had changed and I had to start all over again. It did not take long to realize that those people who had invested time and money into the internet were weathering this economic storm quite well. In fact some were even prospering from it. It’s quite obvious that the internet has become the new hot market. It only makes sense. An internet cash flow business is not subject to the ups and downs of a local economy.

As you can imagine, this economy left me looking for ways of improving cash flow. I decided that if I had to learn something all over again, it would be something that would not be subject to normal cash flow problems. Think about this for a second. The internet offers low overhead and maximum profit. I have no office rent, tenants, mortgages, property insurance or any of the other things that used to tap into my cash flow. I don’t even have to have my own product. I can make money selling someone else’s stuff.

If you are hearing what I am saying, then you need to hear this next part. There are numerous ways to make money online. Do your research. You can drop a ton of time and cash into something if you don’t do it right. Of course, your financial exposure is nothing like what I had in real estate. Compared to that, your risk is negligible. Either way, you want to find the best cash flow system up front.

If you are like me and want to work with likeminded entrepreneurs, then network marketing is the way to go. There are a lot to choose from so be careful. I looked around a long time before I settled on one particular business model. Internet cash flow was my number one priority so I was willing to put in the extra effort anyway.

If you want more information, visit my blog. The link is in my resource box.

Thanks,

Ron Knighton

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Article Tags: business model, cash flow business, cash flow problems, cash flow system, economic storm, financial exposure, hot market, internet cash, investing in real estate, maximum profit, mortgages, network marketing, office rent, property insurance, rsquo, time and money, ups, ups and downs, ways to make money, weathering
Referred by: http://jaykubassek.com



Related Forum Posts
Tax returns! - Well, this is new on me. i had no idea you could sell a site off. If it's anything like purchasing a non-internet business then you need to check into multiple things. Will you need to finance to purchase? If so, you'll need to calculate the cash flow. Also, find out if there will be any add backs to the cash flow, for example, are there other workers invovled to keep the site running...perhaps workers you won't need when you take the site over? Their salaries can be added back to the cash flow if you will not need them. You must see the top page of the last year tax return (never go off just the P & L's). Did the seller run anything personal thru the tax returns that you wont? That's also considered an add back to the cash flow. What is the gross sales for the 12 months? What is the net income for the 12 months? Make sure the purchase price is justified. You can calculate a ball park range on this by doing 30 - 50% of the gross sales for the year or 3- 5 times the net earnings. What is the web traffic like? Is it steady? Do you have time to run the site or will you need to hire someone to manage it? Make sure the business is supporting itself and is profitable. Does the seller have an initial business plan from when they bagan the business, so you can look it over?
Re: Interrealtionship between financial statements - Yes, it’s necessary to take a complete toll of account transactions. If you don’t, then how would you be able to track your financial figures? For example, If a person sold goods for USD 5,000.00, half in cash and half in credit, then with taken impact of all three i.e. cash flow by USD 2,500.00 balance sheet through both cash and receivable and income/P&L statement by USD 5,0000.00, the transaction will not be complete.
Improve your Cash Flow - As we all know, the primary concern of proprietors and managers are cash flows. I would like to share some tips on how to improve the cash flow of your business. 1. Speeding up Collections - collecting receivables earlier, on or before due dates. Discounts for early payments can be one way to do this. 2. Slowing Down Payments - stretch your payables and pay only when it is due. But be careful not to mess up with your credibility. 3. Invest in Marketable Securities - use the money in Marketable Securities and other short-term investments to earn extra cash.
Topics of Interest - There have been some wonderful resources posted in this section. However, I also strongly advise any entreperneur to pick up a few books on personal financial planning; cash flow is key to any business and the best way to start planning good cash flow for your business is to learn some personal financial planning. I have always enjoyed the following: The Millionaire Next Door- Thomas Stanley and William D. Danko Richest Man in Babylon- George S. Clason Rich Dad, Poor Dad- Robert T. Kiyoski and Sharon L. Lichter There are many many more great resources on this topic. These should be read in conjunction with the other resources posted here. Good luck.
rebuilding credit - In order to build credit you need to borrow and payback responsibly. If you have built-up many debts, re-financing to improve cash flow would be a great way to get control over your debts. It's hard to borrow when you have previous bad credit, so the best way to repair your credit score is with secured loans. For example you can pledge cash to the bank and get a credit card that is cash secured, use the credit card and make sure to make monthly minimum payments on time. In Canada you could take out an RRSP loan from a bank, which is secured by the RRSP investment. There is a tax benefit and it helps to improve your credit score.


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