Part 1
The profit and cash have to come first because they’re like oxygen for your business. Without oxygen, your business will suffocate – it’ll sink.
“Businesses fail all the time. 80% of them actually “close up shop” within 5 years. That stat may not surprise you, in fact, some of you may already be a bit numb to figures like that. What you might find surprising is one of the leading reasons for this. It’s poor cash flow management, plain and simple.”
I’m going to tell you about the 7 Deadly Cashflow Sins that are destroying businesses like yours, every single day.
Unfortunately, the consequences of committing these cash flow sins can be catastrophic, affecting whole families. It’s a case of small misconceptions and poor habits, wreaking havoc on businesses and livelihoods that should be absolutely flourishing. But there are two inescapable facts we all must accept before moving forward.
You can’t fire a cannon out of a rowboat, or safely drive a car on the freeway while only looking out the back window.
But that’s what many business owners are doing and they are paying the price. Briefly, firing out busy strategies, sales tactics and people management philosophies is not going to help your business if it is not built on the solid foundations of 100% up-todate books. That’s the first thing. And if you’re not doing this, updating your books is your first and most important task.
If you are relying on numbers that are months or even years old (yup, I ‘ve seen it happen) then, to my second point… you are speeding down a highway trying to keep your business on the road by staring intently out the back window. Lunacy. And very dangerous!
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