wardell books

Chapter 6: Financing


When times are tough, you need cash for survival. When times are good, you need cash for growth. Because cash is such an essential resource for your business, it's important to know where to find more of it before you need it. After, is often too late. This doesn't mean you need to keep large cash reserves sitting in a vault someplace, but it does mean you need access to cash at all times.

Cash can be generated either inside your business (internal sources), for example from profits, or outside your business (external sources) for example, from investors. We'll review these two main sources in more detail on the following pages.