Following the greetings, one of the first questions business owners ask each other is How is Your Business Doing?

Most of the time, the answer is Profit? Does the business make money? And how do you calculate profits? In the business world, profit is the amount left over after taking out all other business expenses and reducing purchases from sales. A high-profit margin is when you have a high difference between sales and purchases.

What matters is whether those profits translate into cash?

After all, not all high profits translate into increased cash flow.

For instance, a business might earn high profits but manage cash flow poorly. You can experience poor cash flow due to high outstanding amounts from your debtors and high stock levels, which may result in the business going out of business even though you are earning high profits.

Businesses should constantly work on closing their cash gap and focus on reducing the cash gap.

Business Coach Ratish Pandey reveals the secret to a successful business: To succeed, it is imperative to have both profits and cash.

Here’s how you can get started:  https://www.youtube.com/watch?v=eh_HWsdYDwQ