Why Profit Shouldn’t Be the Focus
Here’s why…
After reviewing your profit and loss report, do you wonder where all that profit has disappeared to? 😕
If so, I’d love to share this quote with you…
“We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.”
– Michael Dell, founder, chairman, and CEO of Dell Technologies.
If you’re a small business owner and you only have time to focus on just one thing, when it comes to the numbers, focus on cash flow.
Many business owners get caught up with how much profit they’re generating – or revenue, but the illusion here is that the P&L report doesn’t disclose all of your cash outgoings – and so it leaves business owners very confused, and asking many questions…
❓If I’m making a $90k profit per year, where has it all done?
❓Why am I unable to pay myself what I want?
❓I’m working 24/7 and making a profit, yet there’s no cash in the bank?!
The answer is that the profit is likely going towards things, not shown on your P&L reports, such as company tax, service & good tax, and loan repayments.
If you’re struggling with this, then it’s likely your car might be running out of gas too, and the next step should be to start cash flow planning.
It’s amazing how just putting a plan in place can relieve so much stress.
It would really help answer your questions as to where your money is disappearing and how to hold onto more of your profits.
And don’t despair, as a business owner you can turn this around – anyone can with the right support 🤝
Just a reminder about me – I help business owners, and I work with business owners in this situation every day.
So, if you’d like to keep your business topped up with gas, and reduce your money stress, book your business consultation now.