Powering Up Your Profitability: Cash is King
Welcome back to our series on Powering Up Your Profitability. Throughout the series, we will be sharing 5 tips with specific action steps you can take right away to Power Up Your Profitability! This is third tip all about Cashflow!
Miss a tip? No worries!
Tip # 1: Plan For Growth
Tip #3 is all about cash!
What I know to be true is Cash is King. When you have it your financial life flows smoothly and you are in a position to take advantage of the right opportunities for you as they present themselves.
So how do we build cash? It’s by understanding cash flow.
Cash flow is an elusive concept, that literally can make or break any business. This is not the balance in your checkbook or the credit limit left on your credit card or bank line of credit. It’s the movement of money in and out of your business.
Often there are times when there is more going out than is coming in. Having a forecast, or plan, is what will help you stay in front of your cash flow needs rather than being surprised by them.
One of the most important concepts I teach my clients is to look at every expenditure as an investment. Investments have an expected Return On Investment (ROI)… and in business the return we expect is positive cash flow!
Cash is King!
It is what keeps you in the driver’s seat of making life work and growing your business.
Cash is King – begin to build reserves, so you have cash to invest when opportunities present themselves and/or you choose to invest in a new strategy or tactic.
There are many ways to do this, the easiest is to open a separate business savings account to put cash into on a regular basis. Consistency here is more important than the amount initially.
As your business grows in profitability your reserve building strategies will grow in sophistication.
If you are eager to learn about all of these 5 tips right away, along with 5 more, download our 10 Tips to Increased Profitability.