Part 5 Conclusion.
Conclusion to this series highlighting the 7 deadly cash flow sins.
In the dynamic world of business, where decisions can make or break a company’s future, one factor stands out as the lifeblood of any operation: cash flow. It is a critical component that can determine the success or failure of a venture.
Ultimately this is about creating a powerful plan that draws you away from the harmful habits that put your business in jeopardy, and embedding habits that’ll ensure there’s no looking back. Remember, “Those that don’t learn from the past are doomed to repeat it.”
It’s time to break the cycle and forge a truly profitable path.
What is important?
Education: Smart business owners educate themselves on the importance of numbers and how to make them work for the business and their future.
Action. With knowledge and wisdom comes the power to take decisive and effective action based on that solid foundation of up-to-date numbers.
Accountability. Successful people not only hold themselves to account, but they welcome the opportunity to be held to account by others.
S.E.R.P.I.C.O. made me do it!
Acronyms are helpful. They make important, critical-to-success lists, guides and instructions easier to remember so that they’re easier to implement. S.E.R.P.I.C.O. serves that purpose beautifully. Not only is Serpico a 1970s, Al Pacino classic about a New York detective uncovering corruption on the force, it also reminds us of the 7 Deadly Cash Flow Sins that are corrupting our ability to turn a profit.
Sales – myths, mismanagement and how to make the most of them.
Expenses – and why turning your back on them can lead to disaster.
Receivables – let me show you how to avoid profit bleeds, bad debts and the cost of chasing payments.
Payables – avoiding cash flow gaps is critical.
Inventory – “stock turns”-keep an eye on this.
Cash – spoiler: cash in bank does not equal profit.
Owner drawings – Business vs personal: think about what that means for your accounts and cash flow.
There’s one of the 7 Deadly Cash Flow Sins attached to each section, and together, they have put many businesses into jeopardy. By understanding them, you’re on your way to embracing best practice and the rewards that come with it.
Please use our Business Health Check to diagnose strengths and weaknesses and get personalised recommendations and expert advice.
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