To Improve Your Cash Flow, One is The Number
Every business has a seven financial principals that underpins the way they operate from a financial viewpoint.
Not knowing your principals is like walking through a maze blindfolded. These consist of the four drivers of profit and three drivers of the balance sheet.
The four drivers of profit are:
The three drivers of the balance sheet are:
They are the drivers that management should have some control over. Business improvement is driven by changes to these drivers.