Cash flow and Gross profit

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Cash flow and Gross profit

Description

Ch5 – Cash flow and Gross profit

This is probably the most important and least well understood part of most businesses, from multi nationals to start ups.

This chapter explores the following questions:-

  1. What is Cash Flow?
  2. Where does your cash flow come from?
  3. Do you know what your cash flow, debtors and creditors position will be next month?
  4. How are you tracking the changing gross profit of each product over time?
  5. Every product or service has a shelf life. What are your plans to address this?
  6. Should you sell the low GP parts of the business?
  7. Where will the next cash generating product come from?
  8. If margins in current markets are declining, are there new markets available to you?
  9. Where will you find help?

 

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