Roulette

If you are a successful entrepreneur or company owner pay attention not to put all the incomes back into your company. Otherwise it is like playing in the casino and putting your money all the time on the Red. It is committing suicide against yourself.



There are a lot of small companies who have no reserves. Things happen, economics and politics always change so you need to have a reserve to survive. Usually the reserve equals around eight or twelve months of your operating costs.



The income of your company is very similar to your private investment portfolio. You can not put everything into the Trade market you need to diversify your portfolio. Without diversification you act like a Kamikaze.



Lets say you need to create at least three different accounts:

1., Daily operation account

2., Future developments account

3., Security reserve


The best and most effective way if you create a company rule such as this:

60% of the incomes go directly to the Daily operation account

30% of the incomes go directly to the Future developments account

10% of the incomes go directly to the Security reserve account



The most important thing is that you need to plan your business model based on the incomes of the Daily operation account and not on the total incomes of your company.

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