This may not be the most exciting topic, but it is something that comes up a lot with the people I work with on a mentoring/ consultancy/ coaching basis. To start with, there are many ways to structure a P&L. I am sure that people will argue for different ones. Continue Reading
Understanding cashflow part 2: How loss-making companies grow.
This is part 2 of an article on cashflow. Click here to read part 1. I had this explained to me using the example of a supermarket. Let’s say you open a supermarket and stock it with £1m worth of goods (I have no idea of the value of goods Continue Reading
Understanding cashflow part 1: How profitable companies run out of money.
Nobel-Prize-winning physicist Richard Feyneman said “if you think you understand quantum mechanics, then you don’t”. The same is probably true for most of us with cashflow. We think we understand it… ‘make sure more money comes in than goes out’… but most people, and most entrepreneurs, don’t. When someone tells Continue Reading