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A cash register. The sound of a cash register is music to the ears of a business owner. There's nothing like than a business milking and realizing its profits in cold, hard cash, again and again. |
Due diligence comes naturally to an entrepreneur planning to start a new business. A business plan (complete with a feasibility study, a marketing plan, and an industry analysis) is a common tool. On the financial side, one tries to forecast the future cash flows spanning years (even more than a decade) and project an acceptable rate of return to justify the venture. The prospecting entrepreneur commits himself to the demanding undertaking for the long haul, and clearly understands the risks he is about to take given the business realities he observes.
Instinctively, he is mindful of the initial outlay he has to recover and is very sensitive about the venture’s cash flow—he is bias of cash inflow and would not easily settle for booked sales made on credit; he loves the sound of the cash register. Likewise, he’s such a demon on cash outflow that when incurring costs, he tries to delay their payments as much as possible. He hates laying out more cash (especially significant spendings on equipments) than needed. After all, and ultimately, he intends to realize his profits in cash terms.
No stock market, no prospect of trading capital gains, no distortion. The startup experience of an entrepreneur is so pure it’s such a given that financial gain can only be attained through business (marketing and operational) success.
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