Since we teach finance for a living, we’ll begin this book in the manner of teachers everywhere: by asking questions.
Do you know whether you will have enough cash to make payroll next month? How about the month after that?
If you’re running a start-up, do you know your burn rate—that is, how fast you are going through your cash?
Do you know how profitable your company’s products or services really are? Do you know that you can be running a profitable business and still run out of cash?
If you’re thinking about buying a new piece of equipment—a truck, a computer system, a machine—do you know how to figure the likely return on your investment?
Many entrepreneurs can’t answer yes to questions like these. The reason ...