Which is more important Cash Flow or Profit? It’s a question that gets asked often by business owners finding it hard to manage both a positive cash flow and actually making a profit at the end of the month. And there are many variations on this same question… Should I focus more on Cash Flow or Profit…? When is cash
So often we have clients come to us and say “my business is making great sales, and a decent profit, but there’s never any money in the bank!”. Well we are here to tell you bad cash flow has nothing to do with sales … but everything to do with how you spend and collect your money. Imagine running your
In earlier discussions we talked in some detail about Break Even of a business (BE). Taking a big picture approach to the business and understanding how that business can operate while covering the cost of operation. We take this thought further in this paper by examining how to apply BE to the individual parts of a business to extract value
Why do 80% of businesses fail in the first 5 years? Is it a lack of drive? Not enough hours being put into the business? Well, according to Forbes there are five reasons why businesses fail. The first three involve marketing. The fourth speaks to leadership skills and the final, fifth reason, is because a profitable financial system and business
Saving hard earned income from a business is a practise that in theory we know we should do and we should do it often. Putting away some of the in-goings so that we live to see another day is important. It’s when we see that large number in our account that there is an overwhelming (and completely normal) response which
The Break Even (BE) number is not just another percentage and doesn’t fall into the category of “88% of statistics are made up on the spot”. It’s an actual calculation that is used in business to understand how it is performing. It allows the Business Leader to adjust their business plan and either keep going in their current direction or
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