Although it can look like the demands of business, making money, profitability, cashflow, financial management are in conflict with creating great architecture or beautiful design, the opposite is the case. Create a great business-vehicle that makes money and generates great cash flow allows you to create more great architecture.
The misunderstanding is that business owners generally don’t appreciate that there are two different types of accounting
BQ Making Profit and Generating Cash Flow
The second of the 7 Big Questions of Small business. Personally I believe the question about making money is even more important than the first question about growth. Business Growth only makes sense if you end up with more money in your bank account as a result.
For a small business, it can be difficult to find the balance between wanting to chase to ensure that you get paid, but also not wanting to drive your customers away by harassing them.
The biggest opportunity in the development of your small business is to work out what the critical KPIs for your business are. Finding your KPI’s starts by conducting an objective review of your business from the outside looking in. It forces you to really get under the bonnet.
My friend doesn’t have payment terms or a collections system. And consequently, some of the people in the art world who are his clients, use him like a doormat. Time and again. Every year some of his clients think it’s ok to pay him last, after everyone else has been paid. Sometimes he doesn’t even get paid at all.
In a Fun Business that sustains you for years to come you must keep your eye on all three aspects business finance: Revenue, Profit and Cash… but cash is the key to survival
What would you do if you had a sudden windfall in your business? Are you holding off on making an investment because you haven’t got the money yet? The question recently popped into my head while reading about an innovative new working capital loan provider for small business.
A business that doesn’t make profit and doesn’t generate cash is a hobby
First Steps to Sound Financial Management of your business ©by Roland Hanekroot, New Perspectives Coaching 2013 What does it take to make a success of your small business… how can you avoid adding to those frightening statistics about failure rates…