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  • Diana Miret

Question # 9: How can I have more cash flow?


There is 1 key component to cash flow: money coming in must be greater than money going out.


At all times - not just at the end of the month. Or quarter or year.


Duh. I know this is obvious but I wish I could tell you how many business owners ignore this basic rule.


They simply don't look at the monthly expenses. They check the bank balance, and decide what to do next.


They forget that there could be bills to be paid, or payroll to be run. All they see is that (for now) they have cash in the bank.


So the real question is how can I get more money coming in? This is known as REVENUE.


There are 5 key drivers to more revenue:

  • Increase the Number of Sales Transactions

  • Increase the dollar amount of the Average Sales Transaction

  • Decrease the Cost of Sales (as a % of revenue)

  • Control Payroll Expenses

  • Control Marketing Expenses (as a % of revenue)

  • Minimize Operating Expenses, a.k.a. overhead

We will explore each one in the next 6 Profit Jam newsletters.


P.S. Macaroons are one of my favorite ways to spend my cash on! Oh yea. And coffee!



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