Hard times can befall any one. When times are hard, due to economic downturn or other reasons, what is most handy is cash.
But what if you don’t have it? Well, you may have to liquidate an asset or two to get it.
Nobody wants to liquidate assets but sometimes you’ve got to
The key question is – which assets do you liquidate?
A simple way to answer this question is to list your assets and put two columns besides them that detail how much they cost you and how much they earn you in physical cash.
An intelligent businessperson liquidates all assets without a cash flow
Say, your assets as a sole proprietor in a private limited company include:
- A candy floss machine
- A soft drink machine
- A car
- A boyfriend
- A chocolate bar dispensing machine
In the above scenario, you have cash flows coming to you from the candy floss machine, the soft drink machine and the chocolate bar machine.
However, your boyfriend and your car are eating into your time and your profit. They’re not making you any money and could potentially be money-draining liabilities instead. If your boyfriend is a leech, you would do well to cut your losses and move on. Same with your car. If your car is draining you financially, with constant repairs and rising fuel costs, the sensible thing to do is to sell it.
When you get rid of them both, you restore yourself and your business back to financial health.
Financial analysis is about understanding emotion – also removing it from the decision-making process
It is as natural for you to be attached to your car as it is to be to your girlfriend or boyfriend. Still, you need to remove the ‘attachment’ that comes with emotion if you are to make a decision that is in your financial interests and your businesses.
Sometimes you have to get rid of your partner and sometimes you have to do something even worse – you have to sell your car! And one of the quickest and easiest ways to get cash for vehicles is to sell your car to a car removal company.
Cash for car dealers offer car owners a simple, no-expense car sale. You can get rid of your fuel-guzzler for cash, without having to spend time and money fixing up the car for sale. And isn’t that just what you’ve been looking for? A quick, convenient & easy way to get rid of your money-draining machine?