“Profits and cash flow in a business
are like blood and water in a person’s body.”
This is something I often tell my clients and students. Just as a person needs blood and water to survive, a business needs profit and cash flow to survive. It’s not new. You’ve probably heard the business adage: “A business must run at a profit or it will die.” I use the blood and water metaphor to emphasize the point. It’s absolutely essential!
There is no other way to earn a return on capital invested in the business? There is no other way to meet payroll expenses? There is no other way to pay your suppliers? A business needs profit and cash flow to survive. Period.
Yet, setting your business goals solely around making a profit and having a healthy cash flow is seldom (if ever) the way to achieve either of these things…
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