There’s a massive difference between profit and cash. Let’s explore 5 key areas in your business to focus on.
1. Sales.
Profit increases when you increase sales; cash increases when you collect the money from customers. To increase both your profit and cash from sales:
2. Invoicing.
Profit increases when you send an invoice to a customer; cash increases when you collect the invoiced amount. To increase both your profit and cash:
3. Margins.
Increasing your margins will increase your profit; collecting the increased margin will increase your cash. To increase both your profit and cash:
4. Financing.
Reduce your finance costs to increase your profit; borrow money for assets to increase your cash. To increase your profit and cash through financing:
5. Overheads.
Reducing your overheads will increase both your profit and cash. To reduce your overheads:
This is not an exhaustive list of ways to increase your profit and cash. We can help you identify specific areas of improvement in your business to increase both profit and cash. Contact us and we’d be happy to assist.