Cash Flow Planing - How the Rich play Business
Wealthy founders plan the money first and the product second. Stefan Neuss explains the three questions that protect a business from blocked accounts and frozen payments.
Most people start a business with a product idea. Wealthy entrepreneurs, says Stefan Neuss, founder of WERA Capital Partners, start at the other end: with the money. He describes their approach as a kind of reverse engineering, and it helps them avoid one of the most common and costly mistakes in business.
The aim of a business is profit
Neuss is direct about the starting point. A business exists to make money. Anyone who starts a company without that goal, he says, should think again. From this basic principle the wealthy plan everything else.
The mistake most owners make
Many entrepreneurs know the experience: one morning they log in to online banking and find their account blocked. Payments are stopped, money is frozen, and in the worst case the account is closed. According to Neuss, this often happens because the account was never set up for the way the business actually moves money.
Three questions before the first step
Wealthy founders, he explains, answer three questions before they begin:
What should happen with the money the business generates? This is the first and most important question.Who is the target group? A product for the wealthiest ten per cent needs a completely different setup from one for the broad market.Where does the money come from? Knowing the customers shows where most of the incoming cash flow will originate.
The whole business structure, including its bank accounts, is then built around these answers.
The right account for the right purpose
"You can open accounts worldwide, but you must understand for which purpose you want to open that account," Neuss says. Every bank offers accounts for specific uses. Choosing them to match the planned cash flow makes blocked payments and closed accounts far less likely.
WERA Capital Partners helps business owners plan their cash flow in this way. A first conversation can be arranged through the company's website in a 15-minute private consultation.