Part 2.
How to profit from confronting your 7 Deadly Cash Flow Sins.
If I had to point the finger at just one culprit responsible for failures in business, it would be cash flow. Now I’ve already pointed out one of the main reasons for cash flow issues – poor management – but again (for the umpteenth time) it all comes back to knowing your current numbers. And that knowledge has to become and remain a priority.
Sin #1. You focus solely on your SALES figures
Sales: that shiny glittery thing that we don’t seem able to take our eyes off-focusing on sales alone is dangerous!
You really need to focus on profit, that’s the portion you can spend, reinvest and enjoy.
Establish a pricing strategy – think hard about your cost of sales and your overheads which include staff. Use industry benchmarks to help establish pricing parameters.
Sin #2. Ignoring expenses:
Expenses – ignoring the elephant (eating up your profits) in the room is a crime… and our second sin.
Would you like more cash at the bank and to increase your profit? Okay, let’s look at your expenses – on a monthly basis. I don’t mean look at your monthly expenses every 6-12 months. No, I mean look over your expenditure every single month. Look at them critically and strategically.
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