Hello and welcome to Business 300.

My name is Philip Kulenshov and this is 300 seconds about business.

We're all a busy people, so I have five minutes or less to get my point across.

Another five, another source of cash to cover. This is part three in this little mini rant about growth in cash.

As business owners want to grow our business, we also want to grow our cash. We can't have our cake and eat it, at least not at the same time. First we have our cake, and then we eat it. And then we ask for another slice. As long as you do what your mama taught you and say, please and thank you,

you'll be okay. Well, probably not. Growth requires cash, because working capital is a thing,

so you need to get that cash somewhere. You don't want to outgrow your cash, which is possible, so you must watch both.

You must know what's in your wallet and know how to put more in there.

You can fund your growth with your operating activities.

In that case, either your growth will be limited, which is a legitimate option,

or you've got yourself a goose laying golden eggs.

In that case, keep feeding those eggs to that goose, and, call me, I'll pay for lunch. Your second option to fund your growth is by selling assets, but this requires having obsolete assets or assets that you think will be obsolete.

For the rest of us, if we want to fund more growth and our cash can sustain, we must go

to option three, which is composed of two options itself.

Bean counters call the third part of the cash flow statement as cash from financing activities.

This is cash that comes from creditors, so debt, or owners, so equity.

So as the third source of cash divides into two, if I may, this next one is 3.1.

3.1 comes in the form of debt.

Now, before I talk about debt, I suggest listening to episodes 53 and 54 were introduced playing with debt in your business.

The basic impression there is to not let your debt get ahead of your understanding, and also to increase your understanding.

I also must disclose that I am in no position to give you any financial counsel, so that is not what this is.

I'm not a financial advisor, and I'm not pretending to be one. I'm simply so that is not what this is. I'm not a financial

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