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Most business owners don’t have the time to or know-how to read the different accounting reports necessary to manage the financial aspect of a Business.
So many resort to “Bank Balance Accounting”, which is where we look at our bank balance every day and make important financial decisions based on what we see.
Very dangerous waters … but that’s not the worst thing.
In other words, Sell as much as you can.
Incur the expenses you need to deliver on your promises.
Then whatever is leftover is profit.
Profit is a leftover. Profit is an afterthought.
No wonder so many business owners tell me there barely is ever enough profit left over!
What a shame, given all the effort you put in. But there’s hope.
I have been behind many very successful businesses, and as the owner of an Accounting firm, I have see everyday what businesses can do to stop bleeding cash and start accumulating great profits.
It doesn’t matter if you turnover $5M, $500k or $50. The Cash Rich Business Model works.
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