Never Run Out of Cash

by Philip Campbell

The single biggest reason the small business failure rates are so incredibly high today is this once simple fact: Most business owners don't really know what is going on with their most valuable asset - their cash. This easy-to-read, step-by-step guide reveals the secret that will transform the way the reader manages his business forever. You will be surprised how fast and easy it is to take control of cash flow . . . and a business.

Genres: Business

190 pages, Paperback

First published July 19, 2004

Reviews

[Zahwil Dossa · Rating 3 out of 5]

A good message about the importance of Cash as the lifeblood of any business. The book introduces a schedule, dubbed by the author the Peace of Mind Schedule (POM), to forecast cash flows over the next six months. Campbell takes pains to distinguish his schedule from the typical Cash Flow Statement, but it's really not all that different. It still reconciles opening and closing cash flow, and summarizes all the sources and uses of cash. Key differences are that POM schedule starts with a calculation of EBITDA in Section 1, and the timing differences of sales vs. cash collections, COGS vs. cash payments, and changes in accounts payable comprise a separate section. The most important difference is that's POM schedule is future oriented whereas the CFS is backward looking.

I think the POM Schedule is a good tool for business owners to use and ensure they keep their eye on the cash.

I only give it 3 stars because I found the book very elementary and repetitive. This might be a virtue for those who have no financial background.

[Chris · Rating 5 out of 5]

Simple and clear for the non-financial person, but also contains some valuable information for those with more financial background.