Money is a kind of power, but what is more powerful is the education about financial management. Money comes and goes, but if you understand how money works, you have the power to control it and start accumulating wealth. The reason why people just want to quit is because most people have not mastered the real law of money operation after receiving school education, so they have been working for money all their lives. This is what rich dad said.
Operating rules, just like we do financial statement analysis, "revenue-expense-profit" reflects the dynamic aspects of capital movement, operating results and analysis process in an accounting period. That is, the movement of funds in accounting, investment, circulation, turnover and withdrawal. ?
Since the New Year in 2020, affected by the invasion of novel coronavirus, people all over the country have started the mode of "squatting at home". Press the pause button for four months before starting the restart mode. The most important problem facing the industry is "cash flow", which is the most precious resource.
On the battlefield, the two armies confronted each other and the soldiers fought bloody battles. Many soldiers were shot down. How did they die? Most of them are shocked after excessive blood loss, which eventually leads to sacrifice! If they can be rescued and transfused in time, then these soldiers can see the flag of victory flying on the battlefield! For the human body, even if all your organs are healthy and normal, excessive blood loss will lead to death.
Capital is the blood of enterprise assets, and the capital movement of enterprises is manifested in the circulation and turnover of funds.
Capital circulation refers to the process that funds start from various forms of currency and go through material storage, production and processing, finished products and so on. And return it to any form of currency after sale.
Only by constantly recycling the funds of the enterprise will it bring vitality to the enterprise.
A tourist passed by a small town. He walked into a hotel, gave the owner 1 0,000 yuan in cash and chose a room. After he went upstairs, the shopkeeper used this 1 0,000 yuan to pay the butcher across the hall this month. The butcher went to the farmer's house to pay back the pig money, the farmer also paid back the feed money, the feed vendor also gambled on the debt, and the gambler quickly went to the hotel to pay back the room money. 1000 yuan was returned to the hotel owner, but at this time the tourists went downstairs and said that the room was not suitable, so they took the money and left. However, the debts of the whole town have been paid off! Did anyone lose money after reading this story? None of them lost money. Without this 1 000 yuan in cash, everyone will continue to collect debts, and the consequences will be unimaginable. However, the cash flow of 1 1,000 yuan brought by foreign tourists moved, and everyone's debts were solved. This is the capital flow that makes the economy and society rejuvenate!
The defense strategy in 2020 is that corporate cash is king, and the bag is safe. Cash is the blood of the company. Only by flowing can we generate benefits and promote the development of the company. If a company doesn't have enough cash, it can't operate normally. If this situation is not improved, it will endanger the survival of the company! Capital should not only flow, but also benefit from the flow. All unprofitable business activities are also losing blood (the cost of silence). As the old saying goes, everything is at a loss! Of course, in the field of modern economy, some business models can be temporarily unprofitable, but we must know when they can be profitable, otherwise it will cause continuous "blood loss" and the consequences will be very serious!
Do a good job in resource allocation, cash flow will flow and wealth will increase.