Seven Cash Flow Drivers

As we said, profit is nice but cash flow drives the business. Bill McGuinness Washington, D.C.: Kiplinger Books, 2000) lists on page 3 the seven cash flow drivers that determine business success for every enterprise, whether General Motors or the corner drug store.

They are:
1. Sales growth.
2. Gross margin.
3. Selling, general, and adminstrative expense (overhead).
4. Accounts receivable.
5. Accounts payable.
6. Inventory.
7. Capital expenditure.

He spends the rest of the book explaining and illustrating them. Check out this book.

If anything about this grabs you, post a comment.

Everything for me is an entrepreneurial activity. For real estate 2.0 go to www.yourstopforrealestate.com/blog and for writing to www.kearneymusicschoolmurders.blogspot.com