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P&L Battleground - Impact on Business Performance |
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Written by David Willetts
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All businesses need to generate profit which in turn will be reflected in cash generation for the business. Cash is the lifeblood of the business and without strong profits the future funds available for re-investment will be diminished.
Business owners may believe more sales generate more profits which in turn relect in a healthy cash position.
The business performance is determined by factors other than the level of sales, albeit the importance of this element should not be underestimated.
The chart below illustrates the impact that everday actions, other than sales, will have on the business performance and profit of your business.
The successful entrepreneur will understand the relationship between the items listed and their short term and long term impact on the business.
Should you want help in addressing the loss making features contact DAW Consulting for an informal discussion.
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