The quality of your team can have a HUGE impact on your cash flow. You are much better off paying ABOVE market wages and benefits to a smaller number of "A" and "B" players than trying to save some money hiring average people at lower wages.
Here are two examples:
The COVID-19 global pandemic is a wake-up call to ALL business owners to take responsibility for their company finances.
I posted that financial advisors are responsible for the companies they work with to have good financial plans, including a 13-week cash flow model. Now, I am putting the responsibility 100% onto business owners. There are no more excuses.
For too long business owners have said...
"It's not about the money, it's about the people."
"I do it for the love of my craft."
"Someone else can deal with the finances."
"I want to be my own boss, but so I decide that I only want basic bookkeeping."
Now a tiny virus has told you that you are wrong.
You are in business. Business is about the numbers.
Not only numbers, but if you don't have money, you can't...
...work your craft
...let someone else worry
...be your own boss
If you survive this downturn, fix your finances.
Start with a cash flow model that tells you how long you can survive. (Put "Cashflow" in the comments if you...
Profit does not mean that there is cash in the bank. A growing bank account does not mean that you are making a profit.
Surprised? You're not alone. Most schools, CPAs, news reports, etc. focus on a company’s earnings, profits, and sales. That’s because those same institutions are geared toward teaching, working for, and reporting for BIG big businesses and public companies.
But if you are a small business, your most important measurements for the next 3 months or so have to do with cash:
So don’t be fooled by “the establishment” into thinking “profit, profit, profit.”
Think: “Profit with sustainable cash flow!”
Let me know if “profit without cash” is a new concept to you, or if it’s not, how you learned about the concept!
Are you a cost center or do you provide a documented return on investment (ROI) for your clients?
Most companies, non-profits, and government institutions view accounting, bookkeeping, tax preparation, and financial analysis as an expense that needs to be endured. Because of this, they often look for a low-cost provider that meets a minimum standard, like a certification.
Examples would be a QuickBooks Advisor, accounting degree, or CPA or Chartered Accountant.
There are literally millions that have certifications of each type.
What if you could show an ROI to clients?
Show them that for every dollar, pound, Euro, lira, or peso they spend they get to save or make 5x, 10x, 100x, or even 1,000x what they spent?
The best way to do that is through advisory services which help improve a company's financial performance.