Forget about your profit and concentrate more on your cash flow. If your cash flow is healthy your profit will look after itself.
Put your hand up if you have a “No Exceptions” money management (cash flow) plan in place that gives you, if not an accurate daily analysis of what your cash position, will be at least a weekly one. It is often one of the key reasons business fail – lack of adequate available cash to run the business effectively.
So how do you develop a successful money management plan:
Profit and cash flow are not the same thing. Profit is not useable money in the bank whereas your cash flow tells you what money you have available to spend today, tomorrow and hopefully into the foreseeable future.
Setup your cash flow (Money Management System) on your computer so that it is always at your fingertips. Remember: Unhealthy cash flow – Unhealthy Business.
Don’t under-estimate the importance of managing the daily, weekly, monthly cash flow of your business. If you don’t know where to start or you need assistance give us a call or drop us an email and we can get you on track to an improved financial position.