Every business needs to focus on increasing profitability.
Most businesses also need to focus on cashflow until cashflow is healthy enough to take care of itself.
Both are important, heavily inter-twined and if either is neglected then a business can easily fail.
On the positive side of life, a profitable business with a healthy cashflow can:
And it’s just a nicer place to work!
Every business wants to see continuing profit improvement.
So a key focus must be on the profitability of products and services and on the importance of increasing business profitability over time.
By improving gross margins, each sale you make generates more profit and puts more cash in the bank.
Which means the business owners can earn more or choose to keep money in the business to invest in profitable growth for the future.
It’s also important to keep overheads under control so your gross profit is not frittered away on unnecessary expenses.
But profits can’t be improved unless they can be measured which means your bookkeeping and financial information must be more than adequate for the task.
And if you can measure it, you can improve it.
It’s a problem because the business is forever juggling how to pay staff and suppliers, keeping the wolf from the door whilst desperately trying to get paid by its customers.
Poor cashflow is a waste of time and energy.
At the same time, poor cashflow can be a symptom of:
So poor cashflow can reveal the way out of its own mess – but only if it’s understood properly.
Which requires a cashflow model.
And we can help you with that.
Profit is what’s left after costs. Cashflow is what’s in the bank. A profitable business can still run short of cash if payments from customers are delayed.
Timing. Sales might be booked before cash arrives, while wages and bills still need paying. Cashflow planning keeps things running smoothly and can identify risks of “overtrading”.
Their bookkeeping might be wrong and they may, in fact, not be profitable at all.
We’ll create a simple model in Excel, keep it up-to-date and review it with you as often as necessary. You’ll always know what’s coming in and going out.
Yes. We can look with you at your margins, pricing, and costs to show where you make (or lose) money — helping you focus on what matters.
Absolutely. Every cashflow model requires historical bookkeeping to be up-to-date and you can’t measure and improve profitability without accurate numbers.
We don’t believe in forms, we believe in talking to people, finding out your needs and tailor-making a solution just for you.
Give us a ring on 020 7125 0270 or email us at info@bluedotconsulting.co.uk
Specifically South West London, including:
“Blue Dot are uncompromisingly systematic and thorough so that you can get on with running your business.”
“I’ve been delighted with both the service and expert advice I’ve received from Michael and his team. They take the weight off my shoulders when it comes to my business’s financial requirements, allowing me to focus on building and managing the company.”
“We are a small organisation with no in-house financial expertise, so it’s a huge weight off my mind knowing that I can rely on Michael and his team to take care of everything.”
