Entrepreneurs Advised to Take Care of Their Cash Flow

One of the great debates in the business world is around whether profit or cash flow is the most important way of measuring a company’s success. While many entrepreneurs focus their attention on profit, they were advised today to take cash flow into account too.

Perth, Australia – October 10, 2017 /PressCable/ —

One of the great debates in the business world is around whether profit or cash flow is the most important way of measuring a company’s success. While many entrepreneurs focus their attention solely on profit, they were advised today to take cash flow into account too.

This advice came from a business coaching expert who advised small business that turning profit into cash in the bank is the key. If this isn’t done quickly enough to pay the bills then a company is unlikely to be successful for long.

The Founder of YourBusinessCoachingClub, Craig Ridley, commented that both profit and cash flow are vital to the good health of any company. However, he pointed out that, “turning profit into cash takes time.”

Profit is the amount between the revenue earned and the operating expenses. It is typically used to buy new equipment or to pay dividends.

Mr Ridley pointed out the need for good cash flow management in order to have funds available for key dates such as staff wages day and for meeting bank loan repayments on time. He said in an ideal world, an entrepreneur would be able to, “speed up the rate at which cash comes in to the business and slow down the speed at which it leaves.”

He carried on by pointing out that a good cash flow forecast should cover at least the following 12 months and that it should be updated monthly. “It is important be realistic when carrying out this sort of budget, as a business owner who isn’t realistic is only fooling themselves and setting themselves up for a fall eventually.”

The innovative YourBusinessCoachingClub site allows small business owners to learn from the Founder’s 30 years of experience. As well as specialist business coaching, the site also gives access to a global network of entrepreneurs. With YourBusinessCoachingClub training any business owner can feel more in control of their company.

Contact Info:
Name: Craig Ridley
Organization: PGW Solutions Pty Ltd
Address: GPO Box R1254, Perth, Western Australia 6844

For more information, please visit https://yourbusinesscoachingclub.com/

Source: PressCable

Release ID: 248303