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Why does a small business fail... Profit & Cash Flow!


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One reason people fail in small business is they don’t truly understand the difference in profit and cash flow.

 

So, they blow their cash flow on personal crap and starve their business to death. Then when a tire burst or an engine blows they find themselves in dyer straights. Why because they blowed the business money on personal pleasures never realizing the profit margin was much lower than the cash flow going thru the accounts !!

 

At my company we know trucks are gonna break down so we have funds set aside to allow for that we keep 50-100 tires in stock for our units at all times, cables chains and on and on. Christmas comes at the same time each year, your failure to plan doesn’t constitute an emergency. It’s just failure to plain !!!!

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Kevingoodyear 

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