In business, liquidity is defined as the period of time it takes to turn assets into cash. It takes 20 minutes to turn the balance in the checking account into cash. You head on down to the bank and present a check. You get cash.

Cash Ratio

One of the liquidity ratios used in business is the cash ratio.  It is a much more effective tool for small business than the traditional current or quick ratio.  Although the cash ratio is more difficult to manipulate in small business, most entrepreneurs miscalculate the result.  This resource paper is designed to explain to the business entrepreneur …

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An Explanation of Current Assets

The asset side of the balance sheet is divided into 3 major sections.  They include current assets, fixed assets, and other assets.  Current assets carry the most value to the small business entrepreneur because of the cash conversion aspect.  Cash is the blood that keeps a business alive.  So what are current assets?  How do …

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Small Business Model Series Entry #3 – Automated Teller Machines

I started out on this identification process by first listing my personal characteristics and then environmental ones associated with where I live.  I was able to generate a list of 10 industries that had promise for me to start a business.  Next I reduced those 10 down to four distinct possibilities.  They are as follows: …

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