A Law You Can't Ignore

The Rules of Money

“The rules of money are probably Ben Franklin-type rules, such as never squander it, don’t be a spendthrift, be very careful, you have to account for what you’re doing, you must keep track of it, and you can never ignore what happens to money.

“The high priests of Law Two, are obviously accountants. . . .

“What does an accountant do? He looks at what is coming in, and examines all the details of how monies were expended. He studies the records to see how the money flowed through and where it was stored at any particular time. He uses such things as an income and expense statement or an asset and liability statement. These are simply records of the flow of money kept in accurate detail by general categories. The rule of money is that you just can’t hand several people checks and say go ahead, write the checks you want on this checking account; you can’t! Someone has to be responsible for knowing what check was written, where it went, and where the funds were coming from. Those are the rules of money and they are absolute.”

The Seven Laws of Money
by Michael Phillips and Sally Rasberry.

The Business Triangle of Success Factors

“There are many, many factors that make a business a success, or a failure. But there are three major points, three major keys to success, that every business should have. You might think of it as a triangle. If you remember your high school physics, the triangle is the strongest structure that human beings can create. The same applies to business, and the strength comes from all three corners of that triangle.”

“One corner, and the most obvious, is the product or service you are offering. The more quality and the more value you offer your customers, the more likely you will stand out from the crowd.

“The second corner of your business triangle, and possibly the biggest one, is marketing and promotion: spreading the word about your business, finding and keeping customers.

“The third corner of your business is the ‘business end’ of the business: the legal and tax issues, the permits and licenses, the office work and bookkeeping that are required of every business, every self-employed individual. It’s the grease that keeps the machinery running, the glue that keeps it all from coming apart at the seams. It’s the least loved part of business, yet not difficult to learn and manage.

“There is another important factor in the success of your venture: You. Can you do it?”

Small-Time Operator:
How to Start Your Own Business, Keep Your Books,
Pay Your Taxes, and Stay Out of Trouble

by Bernard Kamoroff (pp. 4-5).

The Basic Characteristics You Must Have to Make the Rules Work

“. . . there are a few basic characteristics you’ve got to have or be willing to develop if you’re going to start a business, any business.

Organization: The first and most important characteristic, I feel, is a clear head and the ability to organize your mind and your life. The ‘absent-minded professor’ may be a genius, but he will never keep a business together.

“In running a small business, you are going to have to deal with many different people, keep schedules, meet deadlines, organize paperwork, pay bills, and the list goes on. It’s all part of every business. So if balancing your checkbook is too much for you, or you just burned up your car engine because you forgot to check the oil, maybe you’re not cut out for business. If you are someone who can never find your keys, or your tools, or important documents, you may find running a business more of a struggle. The work in a small business is rarely complicated, but it has to be done and done on time. Remember this is going to be your business. It’s all up to you. Being organized is your key to sanity.

“Reading Carefully: A second important characteristic is the ability to read carefully. Most of your business transactions will be handled on paper or computer, and if you don’t pay attention to what you’re doing, you could miss out. You may receive a special order for your product. You will be billed by suppliers in all kinds of ways, sometimes offering discounts if you are prompt in paying. You will have to fill out a lot of government forms. Government agencies cannot exist without forms, and the instructions for these forms are sometimes tricky. If you mess up, these agencies have the most aggravating way of telling you that you have to do it all over again.

“Numbers: A third important trait is, if not a ‘head for numbers,’ at least a lack of fear of numbers. Tax accountants get rich off people who look at a column of six numbers and panic. It doesn’t have to be that way. The math involved in running a small business is mostly simple arithmetic, addition, subtraction, and some multiplication.”

Small-Time Operator:
How to Start Your Own Business, Keep Your Books,
Pay Your Taxes, and Stay Out of Trouble

by Bernard Kamoroff (p. 5).

Bernard (Bear) Kamoroff was an early Briar and early contributor to the Briarpatch Review.