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Showing posts from 2018

20 and Happily Stuck

At 20 there is a world to explore. The social-programming is yet shallow, and you are defensible. Everything can be undone. Wow, isn't that wonderful?

At 20 we have a hero's vision of ourselves. It can be anything we want, because anything and everything is possible. You can be Julius Ceaser, Nikola Tesla, Wolfgang Amadeus or Sir Charles Spenser Chaplin or combinations of them.

But as the years pass, that hero seems to fade away, alas even die. That's sad. To see any hero die is sad.

After those blissful years of 20-something, why do people let their hero die? Why does ego and vanity take over?

Cash Reserves

We entrepreneurs tend to get excited about cashflow surpluses, for example if there's enough cash in the bank to honour 2 months of payroll and operational expenses. In fact, research supports the proposition that 4 months of cashflow surplus is optimum for avoiding bankruptcy.

But how much cashflow surplus is actually sufficient?

In my view, there should be sufficient cash in the bank to honour all current commitments, including the contracts up to notice-period of all employees on the payroll. So if there are 10 employees costing the company 50.000 EUR per month, and the average notice period for relieving the employees is 60 days, there should be payroll reserves of 100.000 EUR in the bank. In addition, assuming opex of 20.000 EUR per month, maintain 40.000 EUR to cover this. So optimal cash-reserves should be 140.000 EUR.

Maintain at all times an order-book with payments due per month of 70.000 EUR (plus material costs and other commitments).

Before adding a new employee, ens…

Biggest Myth

The biggest myth in life seems to be the one we fall into the trap of believing that at any given point, I have educated myself enough.

The German language has a many self-directed expressions, such as "I excuse myself", instead of the English "excuse me". In the same way, "I educate myself" should in fact be mainstream, because most of our education is self-education.

Vanity at 40

40 is a serious turning point in a man's life, if you let it be. With almost all of life's fundamental needs fulfilled by now – marriage, kids, profession and some wealth to your name, it seems like the krug of life has gotten full. Vanity sets in. A strange sense of weight and inertia sets in, making us feel heavy, less manoeuvrable, less agile and less alive.

But is the krug of life really full? How about if you managed to expand the volume of the krug in your mind, since our world is what we perceive it to be, and make it look like an empty one again? Could you see a second youth that way. Couldn't you be 25 again, only with 15 years of experience?

A large set of social-norms, life's frameworks like family, profession, social-status and worst of all, our own perception of the self come in the way. A conscious mind will however boldly manage them, to have it all back again, and maybe never let it go. Because our would is.. what we perceive it to be.