With all the talk of cash flow vs profit that constantly circulates in the business world, you’d be forgiven for wondering where your efforts need to be focused as a business owner.
It may not always be so black and white, but Ron Gottlieb, one of the founders of Ricky Richards – keeps it simple and direct:
“My dad once gave me some real good advice – you’ve got to make profit”.
It cannot be denied that both numbers should be regularly monitored and analysed in any comprehensive review of a businesses’ financial health.
However, profit is a real measure of a business success – making it easier to generate cash flow. As Ron says – old advice, but sound, and still very relevant in today’s world.
Watch Ron talk cash flow and profits in episode 5 of our Ronnie’s Ramble video series.
You can find some more episodes here.