Importance of Cash Flow

CASH FLOW

   Turnover- you must turn over your cash. Make a sale – make a deposit – buy the next one – make a sale – make a deposit. Profiting enough to pay bills depends on you depositing the money every time and not spending that money on anything else.

   Remember the sale returns to you the cost that you spent to buy the product and that overage is profit – but hold it.  The sale is not the profit. Profit is the amount of excess you returned past the cost of the product.

 Profit is not pure profit yet – it is then used to return the business expense you had to spend to get the store to attract the customer to make the sale. After everything is returned and all bills are paid – that is the profit.  The secret is to sell for enough money or have enough sales to even pay down the debt.

Being in business in today’s Environment

Challenges are plentiful in any business type today. No one has it easy. We will discuss structures indigenous to preventing insolvency.
CAPITALIZATION

Many start endeavors lacking proper capital and this contributes to early failure. This is primarily because the entrepreneur has great trust in his own ability to generate business quickly and whenever he needs to.

It is always wise to double the amount of capital you think you will need to get you to a turn-around point. Some start a business because the new owner likes the product or service or has worked in a similar business.

The functional knowledge he is starting with is somewhat limited. It is common to underestimate the depth of capital that will be needed as well as how long it may take to pay it back once there is a break-even point

Master Shop Coaching has a new look

MasterShopCoaching.com has a new look and feel. With a modified website from our companion business, Performance Site Builder, we are ready to tackle new challenges and new capabilities with style.