KNOW THE MATH
Every successful business owner understands their numbers – they know the math. It’s basically money in and money out. It’s not rocket science. Collect whats owed, pay your bills, and hopefully you have some money leftover, right? Don’t get too caught up in the theory that it takes a business several months or years to start making money. Most business models should make money from day one. Know your percentages, know your margins, set goals and track what you do. Understand sources and uses of cash. The most under-utilized financial statement is a Statement of Cash Flows. Have you ever wondered “why is my accountant telling me we made a profit and owes taxes but I don’t have any money?” A Statement of Cash Flows unlocks that secret and it ties together your Balance Sheet and P&L Statement. All business owners know CASH IS KING! Understand how it flows through your business and figure out how to HOLD ONTO more of it.
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