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Profit has layers that each answer a different question. Gross checks pricing and direct costs. Operating shows if operations are sustainable. Net shows what stays after all costs. Cash flow gaps can affect results between these layers.
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#RT@CharterCapital: Why are there so many ways to measure profit? 🤔
Because each answers a different business question. 💡
✅ Gross Profit: Are products/services priced correctly?
✅ Operating Profit: Are operations sustainable?
✅ Net Profit: What do…
Profit numbers do not always match the day to day reality of cash moving in and out. Data shows 47 percent of small businesses are profitable, but 94 percent still face challenges, and 88 percent deal with disruptions. Forecasting gives a forward view so you can plan expenses and address gaps proactively instead of reacting after the fact. https://t.co/neJis1xRg1
luinc: Del breaks down why passive income almost always beats the "giant pile of money" method, and how one property slashed a tax bill by $150K. Your 401(k) might be setting you up to fail.
Watch and Listen Now > https://t.co/CmuGqdW23a
These three metrics every Monday give a current pulse on business cash flow. Check cash on hand against last week and note the trend. See who owes you and how long receivables have been outstanding. Watch burn rate to know if adjustments are needed soon. The rest of the reports can wait until the picture is clearer.
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#RT@CharterCapital: 3 financial metrics to check every Monday before 9am 👇
Cash on hand vs. last week.
Outstanding receivables.
Burn rate.
These 3 numbers tell you if the business is healthy RIGHT NOW.
Save this for your next Monday morning. 🎯
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