Most CEO’s understand the importance of having consistent cashflow and being profitable but few have a plan and strategy that is scalable for managing this aspect of their business. Are you effectively managing your cashflow and profitability?

In the hundreds of companies I have advised that are currently under 10 Million in revenue and not having the success they desire ineffectiveness in this area is almost always present.

Answer the following questions to see if this might be an area for you to bring more attention to.

  • Do you know how to read a P&L and a Balance Sheet?
  • Are you reviewing your P&L and Balance Sheet on a regular basis?
  • Are you having cashflow and profitability conversations with your executive team or accountant on a regular basis?
  • Are you able to spot trends and patterns in your income and expenses?
  • Do you have a month/quarterly/yearly profitability goal or target %?
  • Do you have monthly/quarterly/yearly revenue targets that are not made up, pie in the sky goals but based on actual sales and marketing metrics and in line with your strategic plan and expected growth?
  • Do you know how much cash you want to keep on hand in your operating account as a percentage of monthly expenses?
  • Do you have separate business bank accounts to manage how money is allocated for different purposes? For example payroll taxes, savings, profit or distributions, strategic reinvestment.
  • Are you making decision on when to spend or reinvest back into your company based on how much money you have in your bank account or from money that has been set aside for the purpose of reinvesting back into your business?

These questions just scratch the surface of the beginning of what a scalable company should have as a foundation for cashflow and profitability management. Managing these two areas is one of the most critical success factors in the long term success or failure of a company. In almost every single successful company I have seen internal discipline has been created around cashflow management and profitability.

Can I help you scale this area of your business?

Message me to connect further or book a time with me here to discuss a complimentary scaling strategy session.