If you only track one number for your small business make it this…

Cash flow – the amount of money coming in and leaving your business at any given time

Cash flow is the lifeblood of your business it will solve an infinite amount of problems if you have it and cause even more if the inflows dry up

If your only starting out and you haven’t really got as far as having a handle on inflows and outflows of cash the best question you can ask yourself is:

How many paying customers do you have?

The answer to this will indicate:
a) if you have a business at all
b) what your projected outflows (costs) against your projected inflows (income) will be

If you don’t have any paying customers you need to work very quickly to try and get some otherwise your business is just a hobby!

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