Business Budgeting Tips #7 Set Profit Goals Plus Cash Flow Goals
Believe it or not, some really big companies that make some huge profits end up failing because of their lack of cash. So how does a company that has huge profits ever fail due to not enough cash. It is because they don’t set both goals for profits as well as cash flow. They are very much different in their own ways and needs. They both need their separate monitoring and gauging so that way there are no unpleasant surprises.
Different business or company owners don’t want to bother using budgets to help them with meeting their different profit goals. Some don’t even have a profit goal and will settle with what they get. The reason they do this is because the business owners figured that trying to learn how to make a workable budget method is just too annoying and hard and one big waste of time that they just don’t want to bother with it. In the end they just hope that they sell enough products or services to cover the bills and end them up with a profit after it all. Thinking like that can end your business.
Danny Wong knew about setting profit and cash flow goals. He currently manages two different startups, both for dress shirts and custom made dress shirts. Should check out their upcoming custom product review site as well, it is awesome!