Ever wondered about the silent killers of profit and cash flow? In a recent chat with Mike Milan (Cash Flow Mike), we explored mismatched financing and high-interest payments that can quietly wreak havoc on your bottom line. Remember, 35% of businesses filing for bankruptcy have net profit. Focus on cash flow to safeguard your business' financial health.
In this episode, Mike and I discuss:
Difference between profit and cash flow
Challenges of managing cash flow in businesses that rely on insurance payments
Importance of understanding the financial gap between making a sale and getting paid
Significance of small changes in cash flow management
Need to speak in terms of dollars rather than percentages
Importance of providing bite-sized, consumable chunks of information to busy business owners
Managing workload for service providers after a certain number of jobs
Silent killers to profit and cash flow, such as mismatched financing and high interest payments
Focusing on cash flow to prevent financial failure
Importance of understanding the concept of the financial gap and keeping it small to avoid cash flow problems
Tracking expenses and using technology to improve efficiency
Differentiating between fixed and variable costs when calculating the cost of goods sold
Analyzing advertising mediums to determine effectiveness
Mike's programs and services for learning more about cash flow management
Listen to all episodes at https://profitablehomeservices.com/
Get a free copy of the Path To Profits Book at https://yourpathtoprofitsbook.com
