The P&L (profit & loss), or income statement, is simply a report of your revenue minus your expenses, which equals profit. As my last blog post explains: profit is not cash but the theory of cash. Your P&L is like a movie of a period of time in your business. Your P&L is a lagging… Read More »
Growing Alongside Your Business
What got you started may not be what’s needed to take your business to a new level. As your business grows, so does complexity, and so should your skill set….Read more »
Net Income Is NOT Cash
Many business owners tell me they are making money, but they have no cash in their accounts to work with. Too often business owners look at the net income (profit) on the bottom of their P&L and think they are making money and have cash in their business. Reality says otherwise. Remember that profit is… Read More »
Not All Growth Strategies Are Equal
It’s commonly believed that focusing on getting new customers is the most effective way to grow their business—but it is also the costliest way to grow….Read more »
Cash is NOT King
We have all heard that “cash is king.” The origin is unclear, but it has been attributed to Pehr Gyllenhammar after the global stock market crash in 1987. At that time Mr. Gyllenhammar was CEO of the Swedish car group Volvo. The maxim is used to reflect the belief that cash is more valuable than… Read More »
Tax Avoidance Hinders Business Growth
Many businesses I encounter are operating in tax-avoidance mode. This is a mistake. Worse, it is a short-term strategy with long-term negative effects….Read more »
Are you struggling to survive in your business?
Many businesses are currently struggling to survive as a result of the pandemic. Often there are many reasons for this condition but one of the most important is the lack of adequate cash flow. Without cash your business is destined to struggle and eventually die. There are only four ways to get cash in your… Read More »
Get to Know Your Banker
Your banker is critical to the success of your business. The time to foster a good working relationship is not when you are in trouble- That’s too late….Read more »
Your Business Runs on Cash Flow
If you do not have cash flow, you do not have a business. Tracking the movement of cash in and out of your business is critical to your success. …Read more »
The Importance of Business Metrics
Numbers drive everything in your business, and without a complete understanding of your business metrics, you really do not know how your business is doing….Read more »