News outlets and sources have to keep track of their cash flow and capital too. It is called having good “capital management”. Ask James Dondero. He is the CEO of Highland Capital out of Dallas, Texas. One of the things he specializes in is helping companies stay afloat and keep on course with their money management.
Millions of dollars are poured into news sources each year. It is important that they do not go belly-up. People put a lot of trust in the news they receive from these outlets. It is important they do not put their faith and money into news stories and individuals who will not pan out in the end.
Here are some tips that James offers new sites and other sources to help them stay on track.
1) You need to keep your personal gains and capital gains separate. Your personal money is “personal”. It cannot be used to “cover” or “supplement” a story that needs to be covered with business capital. Those who are using the personal income to supplement their business accounts are not doing it right.
2) There is a tool called “Google Finance”. James is the first one to tell his clients to use it. This tool is “bare bones”. It teaches the user how to use their money properly. It is a basic tool that anyone can follow and use. It is not just for personal use either. Many businesses use it. News sites in Dallas need to start using it too. It will help you to keep up with your spending. It will show you how and where you are spending your money. It will also help you to keep your personal and business accounts separate.
3) Are you spending more than you are getting back in revenue? According to James, you are going about it in the wrong way. Your debt ratio cannot be more than your income ratio.
Google James Dondero sometime. He offers a comprehensive list to his clients that can help you out. You do not have to be one of his clients to take advantage of this either. Go online now and download the tools.
Find out more about James Dondero and his company Highland Capital here.