Comments on: Profit and Cash Flow Explained http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm Entrepreneurship, Productivity, and Profits Mon, 30 Jan 2012 09:45:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tim Sernett http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm#comment-2736 Tim Sernett Fri, 30 Dec 2011 19:08:14 +0000 http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm#comment-2736 Excellent points, and why cash flow planning, and for that matter, understanding how to read and interpret your cash flow statement in the first place, are so important. Still, the #1 thing you can do as a business owner to improve your cash flow is to improve your profitability, not just your revenues. Most companies don't have cash reserves like Amazon to be able to sustain being unprofitable for very long. Be willing to make some tough choices and cut expenses, as well as improving revenues. Excellent points, and why cash flow planning, and for that matter, understanding how to read and interpret your cash flow statement in the first place, are so important.

Still, the #1 thing you can do as a business owner to improve your cash flow is to improve your profitability, not just your revenues. Most companies don’t have cash reserves like Amazon to be able to sustain being unprofitable for very long. Be willing to make some tough choices and cut expenses, as well as improving revenues.

]]>