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So, what if you run out of money?

Berkonomics

Email readers, continue here…] I find it a great thrill to consult to companies and their senior management when they have plenty of “firepower” (extra cash beyond needs) for acquisitions and strategic initiatives.

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The 4 Commitments To Grow Your Reach Online

Duct Tape Marketing

Duct Tape Transcript Email Download New Tab John Jantsch (00:00): This episode of Duct Tape Marketing Podcast is brought to you by HubSpot. I was building my email list. So there are four that you, uh, talk about in the book, value, consistency, endurance, and generosity. Like this show? I grew my social media accounts.

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Never run out of money.

Berkonomics

email readers continue here.] Running out of cash denigrates the very value of a business, reducing greatly any bargaining power with suppliers or acquirers. But the most important lesson to learn is that cash is the great lubricant for businesses.

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Should you include your sweat equity in a business plan?

Berkonomics

Email readers, continue here…] You could start by charging more for your executive salary, then paying out less in cash, accruing the rest into a payable amount due to you in the balance sheet or plan. Or you could voluntarily convert the loan into stock with a single journal entry and a stock certificate. A “messy” solution.

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Include your labor value in your plan.

Berkonomics

Email readers, continue here.] The IRS could see that you are not paying yourself interest on the accrued debt, and consider it invested capital, eliminating your ability to repay yourself in the future. But the tax effect would be the same if audited – you would owe tax on the booked value. Berkus.com.

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