Why Profitable Business can go ****

Hello Friends.....

If a business is selling plenty of products or services and buying labour and parts at the right price how is it possible for it to go ****?

Cash is more often than not the reason why so many businesses fail. Profits can’t be spent until they are collected. Obviously it’s important to sell at the right price and create the maximum amount of both gross profit and net profit. If you don’t focus on collection though you’re business won’t last very long. Cash is the lifeblood of any business, and if it isn’t flowing at the right place at the right time, this can cause real headaches for the business owner.

Getting cash into the right place at the right time, means having it in your bank account for more of the time, and not that of others. There are many places your cash can be other than in your bank account, such as

* Customers who haven’t paid you yet
* Suppliers you have paid too quickly
* Stock – surplus or slow moving
* Work in Progress – work not invoiced
* Plant and Equipment that could be leased
* Excessive overheads

Thanks