10 STEPS TO A HEALTHY BUSINESS
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FOCUS ON CASH FLOW FIRST.
KNOW WHERE CASH HIDES.
Make sure you understand the
difference between net
income and cash flow.
Do you have cash hiding in
inventory or receivables?
Find it and address it now.
UNDERSTAND PROFITABILITY.
Are your sales profitable?
Make sure you consider your
indirect costs and overhead.
YOUR MAIN STRATEGY.
Your first strategy should
always be running a
profitable business.
KNOW YOUR NUMBERS.
You need to be able to
answer the following questions:
How much did you make today?
How much did you make yesterday?
How much will you be making tomorrow?
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UNDERSTAND THE DIFFERENCE
BETWEEN FIXED COSTS AND
VARIABLE COSTS.
There is a difference—
minimize your fixed and
manage your variables.
DON’T CONFUSE YOUR
ACCOUNTING SYSTEM WITH
YOUR OPERATING SYSTEM.
Accounting systems look at the past.
Make sure you are looking at the future
with an operating system as well.
MAKE SURE YOUR INTERNAL
ACCOUNTING IS ACCURATE.
Inaccuracies can hurt your
business. Ensure all information
is up-to-date and correct.
FIND THE KEY DRIVERS IN YOUR
BUSINESS AND FOCUS ON THEM.
OVER-COMMUNICATE.
What are three or four things
that help drive your business?
They should be your focus.
Make sure to talk with your
banker, CPA and insurance agent.
They are experts for a reason.
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Source: Brad Martyn, managing partner, FocusCFO
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