Here are a few basic truths to help ensure your success: It all starts with simple math. The formula is pretty straightforward: Revenue – Expenses = Profit. You need to sell enough of something and price it properly so that it exceeds your costs of doing business. Knowingly taking work at a loss is a […]
Every company should be run profitably. A portion of this profit should then be saved for future emergencies or needs. This should become the standard approach to managing your organization’s finances.
…if you prune a tree too much it will die. It also requires proper fertilization and conditions conducive to growth. The same thing outcome invariably happens to companies.
I often get asked for a checklist of management improvement ideas. While the following list isn’t exhaustive, I believe it is a good start for anyone who would like to audit their existing business situation:
It’s amazing how many people can’t do basic math when it comes to their business or their lives. Revenues minus expenses equals profit. Profit only becomes cash once it is collected.