Get Control of Your Cash Flow Through Profit Mastery
October 22, 2009
By Jason Dinneen, State Director of the Alaska Small Business Development Center.
You will hear our Alaska SBDC counselors focus on cash flow. It is a mantra we chant in the hallways and monitor like a doctor monitors your blood pressure. With so many of Alaska’s small businesses dependent on seasonal industries, keeping a positive cash flow is essential. Since profit does not always equal cash flow, and with the seasonality of the business, there can be an inverse relationship between sales and cash.
Smart Growth
We at the Alaska Small Business Development Center (SBDC) are proud to offer Profit Mastery to Alaska’s businesses. It is a powerful tool you can use to better understand your financials and more clearly define if more sales or increased volume will equate in greater profits, or just more work. And this is just a start!
The Intricacies of Profit and Cash Flow
Understanding that profit and cash flow are two different things is one aspect of Profit Mastery that you will learn. Working with an Alaska SBDC counselor will help you relate how profits are stated on your profit & loss statement, as well as the position of cash flow on your balance sheet.
As a company, you are working to create profit & positive cash flow while managing your balance sheet. This means you should have the ability to watch your cash, manage your operations more efficiently, and set up credit lines before you need them to handle seasonal cash needs.
Gain Vision, Avoid Surprises
Make a wise investment of your time with an Alaska SBDC counselor. If you would like to amplify this investment of time you should attend the next Profit Mastery workshop. Your Alaska SBDC counselor and our Profit Mastery program will give you tools to help you measure and predict cash flow and profits.
Be better prepared for the seasons of your business. Contact your local Alaska SBDC counselor to learn more.
Know Your Break-Even Point
Make sure your planning includes a break even analysis. Use this worksheet, which covers both dollar and per-unit basis. Your SBDC counselor will help you to determine what your break even point is.