Cash flow crisis OR Profit & Loss?

How do you know if everything is OK financially in your business?

Do you look at your bank statement? No money there so you must be running at a loss??
Do you speak to your accountant? Do you actually know?
I spoke to a business owner who was depressed because sales were down, you don’t have to be a mind reader to know virtually any small business selling goods is having challenges at the moment.
However the person then told me their accountant was happy as their sales turnover had increased BY 30%!
This person could not see this was fantastic news!
They had set the goal of increasing their sales and not only achieved it; they smashed it.
But was that person happy? 
Not one bit.
Why? Because they didn’t have much money in the bank. Why? Because as the sales went up so did the expenses however they had never looked at how to cut costs – ever….
You don’t have to be a genius to work out that if you cut your expenses as your sales are going up, the more profit you will make. Sounds easy doesn’t it?
You would be surprised how many small business owners don’t look at how to find cheaper suppliers, check bills with competitors for Telcos, Electricity or in the case of this business owner, just look at their bank accounts.
So do your small business a favour, check to see what costs you can cut as everyone is striving to get your business as their business, you can use this to your advantage.
Go on, I dare you to!

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