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It is known that the lower the expenses, the closer the business project is to success and vice versa. In order to maintain the balance of the business, a continuous cash flow must be maintained.
Cash flow is the lifeline of your business and the fuel for its continuity. Without a continuous and relatively stable cash flow, you will find it very difficult to solve most of the problems that you will face. Yes, you will inevitably face problems, but the difference between being prepared for them and not being able to even be aware of them is very miserable.
Here comes the role of good business analysis, because with good analysis and knowing your strengths and weaknesses, you will recognize the things that it is good to spend on, the things that you do not need, and also the things that harm you when spending on them.
What should you spend on?
Your ability to know the things that need to be spent on and the things that can be postponed until later is a really wonderful thing. It reduces many cash flow problems and avoids falling into the debt trap.
Let's make it very simple. If you dispense with any item that does not affect the flow of money to your business, do not hesitate to dispense with it immediately. Any employee who does not meet two basic conditions, which are either to save you time or earn you more money, otherwise you do not really need this employee.
Make the most of profits
We all love profits. No one denies this, of course, except for people who are hostile to electric energy and vegetarians. They only deny this fact, and they love profits more than anyone else. Rather, they only love them.
Therefore, it is very important to manage profits well and the best way to manage profits is to invest them again, because once you get the profits you will experience a strange thing, which is looking at them and they give you a feeling of satisfaction and contentment, but with time they disappear and evaporate and go into the dark hole of expenses.
Therefore, the next time when some profits enter your account, think a little and analyze your work and see how you can use your profits to develop your business. Ask yourself what are you missing here? How do these things speed up there? How did that develop?
Profit vs expenses
Many emerging business owners make the mistake of confusing profits with expenses while managing their business because profits are a section of cash flow, and this is not a shame at all. It is like confusing twin Siamese cats when you get them at the beginning, and after some time has passed, you will be able to differentiate between them through their behavior and other different things between them, this is called acquired experience.
This experience cannot be gained by studying or listening to success stories. Yes, this is good for some time, but practical practice must be done immediately.
Therefore, 99.9% of successful business owners are advised to go straight into business as quickly as possible and leave excess planning aside.
This does not mean abandoning planning completely, because planning is also important. When you start a new business project, even if you do not know anything about it, it is good to plan and study all aspects, but keep in mind that the only important thing is (cash flow)
Without it, you do not have a business. You are just a person who goes to work every morning. You sit at your luxurious desk, which your eyes almost cried until you bought it, and you drink your coffee in that elegant cup while you watch everything collapse in front of you because you simply focused on the furniture and luxuries first instead of focusing on the flow. Cash.
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If you would like a free marketing analysis to find out your strengths and weaknesses, contact our agency today. If we are a good fit, I will call you to discuss a different strategy together.
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