Ignore your balance sheet at your own risk

Do you check your profit and loss statements and balance sheets monthly?

They tell you how profitable your business is, says our friend Ruth King.

Your balance sheet shows your current assets divided by current liabilities.

Current assets are cash, accounts receivable, inventory and prepaid expenses.

Current liabilities are accounts payable, taxes payable, deferred maintenance revenue and current portion of long term debt.

Increasing current ratio, most of the time, means increasing profitability. Decreasing current ratio, most of the time, means decreasing profitability.

Your balance sheet also tells you if:

• You may be running out of cash

• Have uncollected billings you need to take action to collect.

• You are taking on too much debt, too much inventory or other cash suckers.

Your balance sheet is your weather vane. It gives warning signs of impending problems so that you can take care of them before they become major crises.

Want more on cash management? Order Ruth’s book, “The Courage to be Profitable: Get and Stay Profitable in Less than 30 Minutes a Month” on Amazon. You can sign up for her free newsletter at rking@profitabilityrevolution.com

Next: Run and ELF business.

Copyright 2020, The Bellune Co., Inc.

You must believe in what you’re selling

Call us old fashioned. We’ve been sold on the power of newspapers and advertising most of our lives. And it has served us well.
Prospects can tell we are talking with them about something we believe in. Without that belief and the passion it gives us, we may not have sold the first ad campaign.
It takes passion to motivate yourself to get out there and show others how what you offer can improve their lives.
Sales legend Zig Ziglar said that we must have passion and belief in what we offer.
One of Zig’s favorite stories was about his colleague who wasn’t selling much.
Zig asked him if he owned the product.
No, the man said, but he “planned to” after he made a few sales.
Zig sold him a set of cookware that day.
He made a commission on it that his colleague could have used as a discount had he taken the initiative to buy it himself.
We must believe in our product or service so strongly that we own it ourselves.
If you won’t invest your own money in your offer, can you expect others to?
Your prospect will feel your lack of belief and passion. Your prospects will perceive that you don’t truly believe in what you are offering and your sales will plummet.
We discuss such ideas in “Maverick Entrepreneurs’ Million Dollars Strategies.” For a $20 autographed copy, call 803-359-7633.

Copyright 2019, The Bellune Co., Inc.