Revenue is revenue when you see the money. Expenses are expenses when you pay the money. Cash is king and that’s what you keep track of. Meaning: If you do some work but don’t get paid for 90 days, you record the revenue as coming in 90 days, not on the day that you finished the work.
Not built in to any of the numbers you’ve just listed is money for you to live on. That’s on purpose. Once you realize that changing the amount of money you need to live on can dramatically increase your chances of success, you have an important choice to make: How much are you willing to sacrifice for the business?
Seth Godin- Bootstrappers Bible
I’m reading this via tiny excerpt daily via DailyLit.com
