One of the most critical issues for businesses is being clear about their sustainable competitive advantage (SCA). Or put another way, being able to answer the question:
There’s a saying that suggests: “profit is opinion but cash is fact”. This in part alludes to the notion that profit can be calculated in many different ways and many different interpretations can be made of profit results. It also asserts that cash is more tangible and cash flow is the lifeblood of a business.
A business can have great profitability as traditionally measured, but also have simultaneously great cash flow problems and this is often the prime reason for business failure. We find it interesting that many businesses with cash flow problems devote a lot of energy to increasing sales but pay little attention to the other factors impacting on cash flow such as waste, rostering inefficiencies, stock control and debtor control. Read more
Challenge your plans for 2013 using the questions in this article. Read more