Maslow’s hierarchy of needs explains why people will risk their safety to eat. First things first. Makes sense.
Maslow is also a great way to think about important aspects of your business.
Level 1 – Can you pay the wages?
If you have ever had to scramble to cover payroll you know how much it sucks. They say that Cash is King but running out of cash is a symptom, not a cause. A simple cash flow forecast is key to moving beyond the horrors of bumping along the bottom. Do it every Monday and learn to predict what is coming: to diagnose causes, and take control.
Level 2 – Gross Profit is the sum of everything you do for clients – every small step counts
Think of gross profit as a measure of power and efficiency. Your business as a machine. You need to be able to check the gauges like a pro. Maybe sometimes tap on them to make sure they are working properly.
Level 3 – Know your income streams
And the gross profit for each of them.
Level 4 – Recurring revenue
Make hay while you sleep in.
Level 5 – Nothing stays the same for long
Always be forecasting.
Photo by DJ Johnson on Unsplash