There are only three ways to generate cash in a business:

1. Operations
2. Debt
3. Equity

Since most of us won't be offering stock on the New York Exchange anytime soon, we rely on cash generated from operations and from loan debt. Good cash management involves managing your business to finance your daily operations and using debt financing to get you through temporary valleys and for capital acquisitions such as furniture and equipment.

Cash from operations basically means the amount of cash you generate from sales in excess of cash you spend for expenses. You need to obey the three Golden Rules of cash management:

1. Get your cash as fast as you can,
   
2. Get the greatest return on the cash you now have, and
   
3. Keep your cash as long as you can.