In the famous book “Rich Dad, Poor Dad” distinctions on how people manage their wealth were made between average to poor people and rich people. Rich people stay on top by learning to be their boss in the field of business. Opening a small business requires great effort, resilience, good management skills and of course a little bit of luck.

1)Planning
Opening a small business starts with planning. Concentrate first on what kind of product or service you want to engage in such as food, retail or real estate. Make sure that you have enough knowledge and passion to back it up. (more…)

Now come on and admit it; you have financial statements but do you really take the time to review them? Maybe the first step is to review the basics…

Method of Accounting

First you have to understand the difference between the accrual basis vs. the cash basis of accounting. Don’t run… it’s okay. I’ll explain it to you. If you only record transactions when you pay or receive cash, then you are on the cash basis. If you record transactions to accounts receivables, accounts payables and prepaid expenses then you are on the accrual method. Whew, that wasn’t so bad! (more…)