The failing of business start-ups is legendary. There are gads of reasons, but the primary and obvious one is that the owner needs money. Without an owner paycheck, a for-profit business is cloaked in non-profit attire. If a business doesn't use a financial model that supports a regular owner paycheck, the business will break down.

An owner rarely thinks about being paid for each hour they spend on their business. They are in it for the love of entrepreneurship-ideation, independence, resilience, and eventual ROI. Yes they want a pay-off, but in the exciting start-up phase, they get through on a diet of fresh ideas which, to most entrepreneurs, are just as important as food and water.

Reality hits when the "cup of soul" is drained. This simply means that the business has moved past early start-up and now needs more elbow-grease and follow-through-and fewer fresh ideas. It normalizes (feels like work) and the owner gets hungry, literally and figuratively. And in some cases, they are getting hard up for cash. Because they are contributing fewer big ideas in this phase-which is what feeds this personality-their energy wanes along with the pocketbook and the to-do list now seems insurmountable.

For some, their energy returns. They figure out how to enliven it in their mind and hearts again and they break down that to-do list. For others, the hum is gone and without it, the business falters.

Those who find the hum again have figured out an essential element to success: their business demands from them a supreme confidence in their business idea. A paycheck provides a significant boost to reminding them of their intrinsic value. For bread-winners, it helps them keep their energy and time in the business.

A new business rarely provides big salaries. In fact, a smart business plan starts with a small payroll, and ramps up contingent upon hard-won sales. While labor laws don't apply to owners, an owner who believes in their intrinsic value, and does what it takes to ensure their cash flow supports their pay each month, is a smart owner.

The simple take-away is this: A successful and long-term business provides the owner with a regular paycheck that is in-line with cash-flow, real effort, and results.

Successful business owners devote regular amounts of energy and time managing the day-to-day fluctuations of their cash. And they sleep better simply because they know. It's the not-knowing that drives most owners to getting less sleep--and therefore having less health.

Cash Flow Analysis sounds mysterious, and to some novice owners it sounds like something they might not have any skill to do so they avoid it. Whether or not you have the skill is not relevant, really. You own a business, therefore, continuing to learn about money matters is a must. If this sounds like you, find someone who can teach you how, set up your systems, and learn how to do it. Or, hire them to do it for you.

The simple daily, weekly, or monthly analysis is based on 4 basic elements: your bank balance, the bills you owe, the money owed to you, and the investments and loans in your system. 

The frequency of your analysis is up to the size of your balances and transactions. Small businesses can get away with a weekly or monthly check. Larger businesses are tied to a weekly or daily check. As your business grows, the analysis can get more complicated because there are predictions and budgets involved. 

1. Your Bank Balance: Reconciling your bank account every month is critical. Knowing where      you stand in your bank account gives you the foundation for understanding what the next week's cash needs are. Without it, your foundation is as good as sand.
   
2. Bills You Owe: Otherwise known as Accounts Payable. Bills you owe are the monies that are going out of your business, including payroll, vendors, regular expenses, loan payments, and the monies you owe Uncle Sam.
   
3. Money Owed to You: Known by Bean Counters as your Accounts Receivable. This is what your customers and anyone else owes you.
   
4. Funding from Owners, Investors or Lenders: Leverage your resources by using other people's money to expand your business' reach. Most business' keep their account balances in check by getting help from lenders or investors on a fairly regular basis.

If your cash picture is bleak, denying reality by not looking at it is not helping you. Take charge by building a system for each of the elements, do the calculations, and review it regularly. If you are having trouble with the system creation or making the time--hire it done!

If you build a system, stick with it, and review it, your bleak picture will transform into a fantastic picture. How? Because you will see the bottomline, you will start to make decisions that make cash flow sense. You will get better at collecting payments, cutting expenses, and bringing in revenue. It's just a natural evolution.

Before you know it, it will be a something you look forward to. And then you can take a nap.

Financial success is about more than just how much you save versus how much you spend. To be truly successful and prosperous you have to develop a healthy relationship with money. Goals can help define and create structure in this valuable relationship.

The first step in the goal setting process is to be aware of your current situation and attitudes about money. You must learn to trust yourself and life to give you what you need. With money comes power, and this can create problems for people who are overly controlling or people who fear power because they think it will change who they are. Develop a personal reason for wanting to become more successful that goes beyond the obvious (safety, security, happiness) such as improving self worth or creating personal boundaries. Just like a love relationship, value what money gives you, communicate openly, and spend time learning and educating yourself about money.

The next step is to dream. We call this the "Great Result", and you must be able to envision and imagine all possibilities. Use your mind to creatively build your ideal world and allow no limits. What does it look like? How does it feel?

If you need, help try this simple exercise: Write down what you want and what you don't want. Keep the exercise light and playful and allow it to grow. Once you get your dream envisioned, put it into words. "I am debt free. I have a life of beauty and simplicity, and I engage in enriching relationships. I am abundant. I am wealthy."

The third step is to build a system. Intentional organization delivers the "Great Result", which is the mechanics behind your dream. The system has to be built by you and personalized. Write down bite-sized chunks of repeatable action. Gather tools and people for support; talk to a financial advisor, take classes or hire a coach.

Don't worry about where to start; start where you are. Focus on one thing at a time.

Preparing for tax-time can be severe. Trying to estimate what I will owe, I decide it's best to go with worst case scenario. No magic wand in hand, a number is picked from the sky. Amazingly I've overshot my estimate by quite a bit, or so says my accountant. Oh, sweet relief. Two weeks later, dismay takes over as the final report arrives, and it is to-the-penny the same amount as my random, what-do-I-know number.

I decided to do some research. The Tax Breakdown Project explains that more than thirty major departments and their sub-departments, such as Agriculture, Education, Transportation and Veteran Affairs, are beneficiaries of my hard earned cash. In other countries, Denmark for example, everything is paid for on the government's tab including healthcare, education, and elderly care. They hold the record of the heaviest tax burden in the world. The Danish car buyer pays a registration fee of 180% plus a 25% VAT (value added tax which everyone pays on ALL goods and services) for a total of 205% tax on top of the cost of the car. In addition, his income is taxed at 68%. Maybe the salaries in Denmark even out the cost of living. I don't know. Godt, tak. Nej tak. That's Danish for, "Well, thank you, no thank you."

I wrote out my checks to Uncle Sam with gratitude this year. Thank you for the national parks, for my children's education, and the roads that enable me to travel.  Thank you for taking care of our veterans and their families. Go to a VA hospital. This system is far from perfect, but it doesn't give us an excuse to blow off additional community needs. I sign, insert, lick and stick and it makes me feel pretty good.

Is "making a living" actually killing you? Does your job feel like a downward spiral into a fragmented life with broken relationships? Do you spend more than you earn? Millions of Americans are wheeling around in this vicious cycle. This book teaches how to get out of debt and save money; value life over material possessions; match your values to your livelihood; and help the environment while saving money.

Dominguez and Robin have you start by calculating exactly how much you make per hour. Consider all the time and money you spend on work (prep and unwind time, commute, clothing, meals). Track EVERY single dollar you spend, and convert those into hours of life energy. Example: You find that you actually make $5 per hour. Take the amount you spend on latte's per month ($60) and divide that by your hourly income. That's 12 hours of life energy!

Does the fulfillment you get from that life energy fit in with your vision and life's purpose? Spending money only on things that make you truly happy will make your job feel more rewarding because you increase your quality of life.

The "magical" step occurs when capital income surpasses your monthly expenses. At this point you are financially independent and will no longer need work to live. Fulfillment will come from doing what you most innately desire. The key is to become a knowledgeable and informed long-term investor. The authors encourage you to have faith in yourself and to use common sense when investing.

This book breaks the commonly held assumption that you must bring in a six-figure income in order to enjoy life to its fullest. Simplify your existence by only trading life energy for things that truly bring you happiness and contribute to your purpose.