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You Need Plenty Of Cash To Build A Business

by | Nov 19, 2020 | Business, Finance

To be on top of your business you need to have continuous sales and marketing activities to make sure you attract enough leads and conversions so you have enough customers.

Without sales and marketing you haven’t got a business. The key roles of sales and marketing are becoming intertwined in the easy access to large segments of the market.

Your responsibility, yes yours, is to understand your market and their needs. Deliver products and services in a timely fashion and get paid for your efforts.

It is important to have a solid business structure that systemises the routine and harmonises the exceptions so you have a business that functions in a consistent manner.

It is imperative as the business owner to have a full understanding of the difference between cashflow and profit in your business. Many potentially great businesses go out of business because their cashflow dries up and the business runs out of cash to operate

You must create structure and have financial tools that enable supply so you can pay your bills and continue to trade. It is important to understand the impact and gap between provision of products and services, the expenses and delay between buying inventory and paying costs prior to getting paid. You need cash to get you through this period.

How long would your business last if you had no more sales? One month, two months maybe three? That is how much free cash that you need to have to pay your way forward. This is where the threat and risk lays in your business and it needs to be managed. Profit in a business is only realised when you have paid all of your expenses and you have a surplus of money from from your transactions.

If you would like to find out more about how to grow and build a solid business that looks after you and your family, contact me and join me for one of my Build a Better Business workshops during Small business September for more information click here —> http://goo.gl/ybYhKz

Until next time.

Chris