Small Steps to Big Profits

‘Compounding interest is the most powerful force in the universe’ This quote is often attributed to Albert Einstein. Compounding is the process of earning interest on your interest. Initially, the interest earned will seem insignificant. However, if you are patient and continue to reinvest the interest, your money will start growing at an exponential rate. […]

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January 17, 2013

Analyse Your Business in 3-D

Before you decide to apply a strategy to improve your cash flow you must first find the root cause of your cash flow problems. Relying solely on the traditional financial statements to analyse your cash flow is not enough. You need to take into account all aspects in your business. This requires analysing your business […]

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January 17, 2013

8 Ways Poor Cash Flow Is Affecting Your Business

Poor cash flow can affect much more than the financial performance of your business. The non-financial costs of poor cash flow can have just as negative an impact on your business as the financial costs. Here are 8 ways poor cash flow is affecting your business. Increased interest and bank charges – When having to […]

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January 17, 2013

Cash flow – treat the cause not the symptom

The Smith’s shop had been profitable from the day they bought it. The shop had run smoothly and there was always money in the bank. Business had progressed so well they decided to move into a larger shop not far away in the same suburb. After the move revenue dropped and cash flow slowed. The […]

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January 17, 2013

Top 10 Causes of Poor Cash Flow

The Smith’s shop had been profitable from the day they bought it. The shop had run smoothly and there was always money in the bank. Business had progressed so well they decided to move into a larger shop not far away in the same suburb. After the move revenue dropped and cash flow slowed. The […]

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January 6, 2013

I made a profit! Why is there is no money in the bank?

[su_youtube url=”http://youtu.be/RNxRVc_e3OY”] There is a big difference between cash flow and profit. Here is an example of how it works in a typical small business. This example shows a business that makes $50,000 profit but actually has made a cash loss of $5,000.

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December 1, 2012

You CAN go broke making a profit!

Businesses fail because of lack of cash not lack of profit. Its not a profit until the cash is in the bank. Obviously it’s important for your business to be profitable and you should focus your attention on making your business profitable. However, if you focus on profit and neglect to focus on cash flow […]

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November 29, 2012

3 Stages of Financial Intelligence

The difference between businesses that fail or struggle to survive and businesses that are successful is their level of financial intelligence. There are 3 stages of financial intelligence in small business 1. Start Up: Focus on Sales When a small business starts it will focus on trying to increase sales as fast as possible. Unfortunately, […]

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November 29, 2012

Are there holes in your cash flow bucket?

I was watching a program on television with my son called Escape from Scorpion Island. It’s a survivor type of program but for kids. The children were divided into two teams and had a challenge to take. The teams had every right to be motivated to win the challenge because the prize was to be […]

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November 29, 2012

Is your business chasing the wind while ignoring the pain…

Sunday morning is your favourite time of the week. Every Sunday you go down to your local coffee shop for breakfast and to read the paper. However, just as you are heading out the door the phone rings. You answer it. “Hi, I have just called to inform you that if you come down to […]

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November 29, 2012