Book Review: The Four Principles of Happy Cash Flow

The Four Principles of Happy Cash Flow
By Leita Hart, CPA

Cash is king! This is a simple three word sentence, but it is very powerful, and forgetting that cash is king can have severe consequences for business owners. Business owners that do not understand cash flow can actually find themselves in the odd position of making a profit while going out of business!

Knowing that cash is important, however, is only the first step. Business owners need to know how to generate cash, and they need to know how to manage their cash once they get it. The good news is that understanding cash flow does not have to be hard.

In The Four Principles of Happy Cash Flow Leita Hart has condensed cash management into four basic principles, and she describes them in simple easy to understand terms. She demonstrates the concepts by using examples from familiar companies such as Dell and Wal-Mart, and she explains how the principles can be applied to businesses of all types and sizes. The book includes ideas for:

• Maximizing cash balances,
• Getting money in the door faster,
• Managing or controlling inventory,
• And more.

Click here to see a review of the book on Amazon.com.

Book Review: Younger Next Year

Younger Next Year: A Guide to Living Like 50 Until You're 80 and Beyond
By Chris Crowley and Harry S. Lodge, M.D.

I was skeptical when I first heard about this Younger Next Year. There are so many books about healthy lifestyles or dieting or exercise, I’m not sure the world needs more. I’ve also grown weary of every new age bit of hocus pocus that seems to show up on the best seller list and talk show circuit. The guides supposedly based on medical research are not any better. One day caffeine is bad, so we are all supposed to give up coffee and tea, and then the next day it is good. Alcohol used to be bad, now wine is good. As far as food types go, choose your poison: carbohydrates, fats, or protein. It was refreshing to read a book that distilled it all down to something simple, “Quit eating crap!” Then to top it off, the authors continue to tell it like it is by reminding us that we really do know what is good to eat and what is not. They also remind us that deep down inside our genes, we know we need to get moving. We just weren't made to sit on the couch in front of the TV all the time.

Younger Next Year is a great book. It is not just another diet or lifestyle book. It will give you something to think about. It was fun to read.

I heard about this book on a cross country skiing and camping trip in the Boundary Waters Canoe Area Wilderness in Minnesota. I’m fairly active, so wandering about on the lakes and in the woods of the North Woods is fun for me. One of the people on the trip mentioned the book, and it sounded interesting.

The basic premise is that our whole understanding of aging is bunk. We seem to have this idea that people begin some sort of downhill slide sometime before they reach 50. Then when they reach 50, their bodies really begin failing so that life is really a gradual and pathetic descent into painful decay. Upon reaching retirement people can look forward to a feeble existence living out their days in a nursing home. Look around. That’s just not true for everyone. It is not even true for most. Sadly it is true for too many. It does not have to be this way.

Chris Crowley and Harry Lodge got the idea for the book after Chris went to Dr. Lodge for a checkup after retiring. Like many people, Crowley needed to make a few adjustments to his lifestyle. Unlike many people, he really listened when the doc gave him the news. It turns out that many of the things that we think of as normal aging are actually the result of our behavior. The majority of illness, it seems is caused by our modern lifestyle. A few simple ideas can help us stop and even reverse that “normal” decline. In the book Chris describes his story in an entertaining fashion. Harry explains the science behind what Chris says. It is sometimes thoughtful and often witty. Neither of them pull their punches.

The book leaves the reader with a solid take away. The basic guidelines are all wrapped up in Harry’s Rules. There are seven of them. I’ll list them here, but you will get a lot more out of them if you get the book and read as Chris and Harry describe them. If you want a preview, then check out their website. The book has turned into quite a sensation. Chris and Harry now have a website, blogs, and even speaking engagements.

Harry’s Rules

1. Exercise 6 days a week
2. Do aerobic exercise 4 days a week
3. Do strength training 2 days a week
4. Spend less than you make
5. Quit eating crap
6. Care
7. Connect and commit

Check out the book. No matter how old you are today, 30, 40, 50, 60, 70, or more, you can be younger next year. By the way, the guy that told me about the book was retired. He said that trips like the winter camping trip we were on was part of how he stayed young.

Book Review: Let My People Go Surfing: The Education of a Reluctant Businessman

Let My People Go Surfing: The Education of a Reluctant Businessman
By Yvon Chouinard

Yvon Choinard is the founder and moving force behind Patagonia. This book is his story. Most people come to think of business books as "how to" books. We learned how to manage in The One Minute Manager. We learned how to evaluate business in, The Balanced Scorecard, and we learned how to emulate success with, In Search of Excellence. We could even learn to Swim with the Sharks Without Being Eaten Alive. For those interested in the people behind the businesses, there are plenty of biographies. Business people looking for advice from the past are even exploring books such as The Art of War and The Prince.

Let My People Go Surfing: The Education of a Reluctant Businessman does not fit neatly into any of those molds. The book is part biography and Choinard's life is fascinating. As a child, he moved from Quebec to Southern California. He spoke little English, and the family had little money. The narrative includes interesting stories about childhood challenges, and in time we learn how he became a climber. Choinard did not really start out to build a business. He started out trying to develop better climbing gear and trying to support his hobby. He sold his equipment out of the trunk of his car!

The book is a story about building a business. Choinard talks about the challenges of growing a business. Some of the challenges were formidable. The equipment his company produced was designed for specific uses by people that knew what the equipment was and how to use it. Even so, that did not prevent product liability lawsuits, and Choinard writes about his legal difficulties. The approach is forthright, and he candidly talks about the challenges he faced and how he went about addressing them. He spends as much time describing decisions that did not work out as he does those that did.

The book is also a story about business philosophy. Choinard and Patagonia operate according to a set of core beliefs. Their customer focused, highest quality, product driven practices are derived from these beliefs. The three general guidelines Patagonia has for promotion demonstrate this.

1. Our charter is to inspire and education rather than promote.
2. We would rather earn credibility than buy it. The best resources for us are the word-of-mouth recommendation from a friend or favorable comments in the press
3. We advertise only as a last resort.

Patagonia demonstrates that it is possible to be successful and to also embrace "social responsibility." The company emphasizes renewable resources and sustainability. It works hard to understand and meet employee needs. For example, Patagonia was one of the first employers to offer employer sponsored day care. One of the reasons for this is that Patagonia also recognizes that its employees are its greatest resource.

If you are looking for some new ideas about business, and you want something other than the usual business book. Check out Let My People Go Surfing: The Education of a Reluctant Businessman.