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.