The Rea Report Spring 2015 | 页面 3

10 STEPS TO A HEALTHY BUSINESS 1 2 3 4 5 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? 6 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. 7 8 9 10 Source: Brad Martyn, managing partner, FocusCFO 3