Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

Why is Cash Flow Important in a Business?

Companies that generate high cash flows are expected to survive, thrive and deliver strong returns to their shareholders. Companies that generate higher levels of cash generally indicate that they are in the right business. It implies that they have been offering the right service or products at the right time and at the right place.

A high cash flow company has defensive qualities, which become the favorable option for investors during the volatility periods. Those companies have sufficient operating cash and capital will be stay longer in the market. In the other words, they are not relying on external sources of funds to pursue their opportunities.

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How Much Are You Worth?

How do you rate your value mostly? How do you figure out how much you are worth when it comes to your career? How much should you charge your client? Are you creating quality work for the money? Bear in mind that whenever people spend on you, you are being paid based the supply and demand of what you’re doing.

When you like to spend time with someone, it’s because you’ve measured your return on investment. A high ROI would mean delivering high value in return for a small investment within a short period of time. While a low ROI would naturally mean the reverse.

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Do You Need a Business Partner?

Based on my observation, I can see that nearly every entrepreneur has a business partner in their lifetime. Partnerships are usually set up to reap the expertise that each person can bring into the business. This is because two or more heads are better than one. When you form a partnership, you had sharing the responsibilities and may be able to offer a greater range of services.

However, there’re still a lot of people feel that it’s a bad idea to go into business with a partner as you will be splitting your overall profit. For me, we should try to think in another way round as a partnership can actually help increase your overall profit. The reason is because the person that you are collaborating with may be able to help you attract more customers, as well as get more work done to provide reliable services to customers.

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What To Do With RM10,000 Nowadays?

I have been wondering what you can do with RM10,000 nowadays? Or if this RM10,000 is a windfall, what are you going to do?

For me, I have used my own savings to startup a business which is not easy as what others think. Before you start a business you must always have a definite goal. I have tried to keep on asking myself:

i. What is your plan, can it work?
ii. What type of business you want to venture into?
iii. Where, when, why, and how to start your business?
iv. Do you have any experience in this business?
v. How much return you want to generate from your business?
vi. Can your business operate for long term?
vii. How long would it take to earn back your startup capital?

Recently, I have started a web business and employ some full-time salesmen to work for it. However, I do not expect that it will generate fast return within short period. According to my current strategy, I will need 1-3 months to gain some market feedback. From there, I will know whether my business strategy is workable or not. Meanwhile, my partner and I will try to come out solutions to change into something that customers actually want, rather than our own interpretation of what they need.

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Multiple Sources of Income

I always think that creating multiple sources of income is the best way for you to retire peacefully. It is important as you no need to worry much even do not have to work anymore.

Multiple sources of income do not mean that you need to work for several jobs for multiple incomes. If you have more sources of income, then the more stable you are when facing global economy crisis. For example, when you loss your main job and most probably you will be jobless for few months. During this time, you still have passive income that can support your living expenses.

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Which Restaurant Eligible to Charge 5% Government Tax?

Do you know since 1st July 2008 onwards, all food restaurants other than hotels exceeding RM3million per year will be charged 5% government tax? I was in doubt whether certain restaurants like Old Town, Mcdonald’s and KFC can earn RM250,000/month for each outlet or not.

Sometimes, we as a consumer need to think whether the restaurant has the eligibility to charge us or not. If let say they are not eligible to charge us and still collecting 5% government tax from us then for sure it will become illegal !!!

Basically, a company could only collect 5% government tax from consumer if they have the license to do so, meaning they have to apply for it and obtain approval before charging it to customer as they are merely collecting on behalf of the Inland Revenue. And the money is not kept by them but need to be remitted to Custom at the required time.

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Good Idea to Invest in Car Parking Lots?

Many people feel that one highly generated profit in the real estate business is the car park sector. Why they are thinking like that? It’s because there’s just minimal maintenance and low labor cost (or even none), so running a car park business can gain great return in long term.

From what I’ve surveyed recently, nobody is sure about investing money into stocks, bonds, and mutual funds. So, they are searching for new investment opportunities and one of the new ideas for them is investing in car parking lot. Yes, one of the nice things about investing in car parking lot is that there are lots of different investment sizes that you can make. You can make your own decision whether to purchase a small number of spaces or hundreds of spaces. Thus, this kind of investment is more versatile.

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