I coach a lot of entrepreneurs on their way to a better, higher cash flowing business.
Today I want to share the first step I always take when I help a new company. It’s almost my magic trick since the outcome of this can immediately have a huge impact on the results of the business.
It’s so simple, and yet so overlooked.
The first step I take is asking the following question: how big is the difference between your sales and your turnover today?
9 out of 10 entrepreneurs cannot answer.
If they don’t know, I am happy, because I know there is a huge potential for growth.
But let me turn the question over to you: how big is the difference between your sales and turnover today? And, which one should be the biggest of the two?
I will let you in on a secret: you always need to make sure your sales are bigger than your turnover.
Why?
Because in most cases you will first sell something, and only then deliver it. That means there is a certain amount of time that will pass between the moment of the sale, and the moment you can invoice the job done.
So if your sales are higher than your turnover, it means that the amount you sold last month is bigger than the number of invoices you made; you are growing.
Sales are pouring water into the bucket, and the invoices are literally taking that water out of the bucket.
Your job is to make sure that there is always water in the bucket, and that the water level is rising slowly but steadily.
If you don’t get this concept straight away, it’s okay. But it might mean that you are not reaching your full potential.
So ask yourself: do you really know what it takes to grow a business, or could you use some help?
With Beyond Entrepreneurs, we’re here to help – to help you grow your business first, and then invest the cash flowing out of it so that it pays you for life.
And that my friend, is the entrepreneur-investor lifestyle.
To freedom,
