Among the largest contributors to the failure of both small and larger businesses, are either, they fail to make a Profit or they incorrectly account for their cash and run out of money to pay their debts and tax liability
This is particularly acute in small businesses where the owner/operators do not necessarily have much experience in financial matters and find themselves in an unexpected cashflow crisis.
Here conventional accounting is turned on its head by starting with a focus on Profit first. It also introduces a simple set of "Piggy Banks" that give you a “set and forget” approach so that when tax and other expenses become due, you have sufficient funds to pay. And, along the way, you have also taken out not only a Wage but a Profit as well.
In this Skills Module we turn the traditional approach to measuring a Profit - indicated by the formula below - on its head.
INCOME - EXPENSES = PROFIT
This formula leaves a Profit as the "leftovers" in the operation of your business; no wonder so many businesses don't make much in the way of a Profit.
The following articles are included in the Skills Module:
SM6.1 Background Information
SM6.2 Profit Focused Business Model
SM6.3 Focused Business Model Video 1
SM6.4 Business Model Video 2
SM6.5 "Piggy Banks"
SM6.6 "Piggy Banks" Video
SM6.7 Wrap-up and What's Next
Further articles on your Finances can be found at the Menu:
D6 Manage Business Finance
We do not know your business and its environment so we can only offer general advice on what might assist you to grow the Profit for the business you presently have. You should always seek professional advice on specific matters only discussed in general terms here.
We cannot guarantee results in any particular period of time or amounts, we do not know your particular circumstances.