Financial awareness-08-08-2020-Thumb rule #1

*Tomorrow is too late, yesterday is over and now is exactly the right moment. So START financial planning Right now*

Thumb rule #1

*Understanding the measures of Moneymaking-

-*Growth* for its own sake doesn’t do any good. Growth has to be profitable & sustainable.

-*Cash generation* Cash is ‘a company’s oxygen supply. It gives you the ability to stay in business, *Get a total picture*

– *Return on assets* -Not managing only by numbers, *Velocity*-how fast a particular asset moves “through a business to a customer.

*Missing the ‘A,’ or assets part isn’t usually apparent in good times. “It’s when things are slowing down that ROA makes all the difference. Emphasize the ‘A’ continuously—so that their people are always managing the receivables, the fixed assets, and the inventories—that thrive in good times and bad.”

*Think like an Owner*

 *First*, we’re able to think of the business as a whole.

  *Second*, we see the linkages between our unit and the business as a whole.

 * Third*, we’re better able to grasp what’s happening in the outside world—such as an economic slowdown—and relate that to the business and even to our own area.”

*Growth, cash generation, and return on assets—these concepts, along with a focus on customers, form the nucleus from which everything else about a business emanates*

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1. Financial awareness

2 *YouTube Link 

Author: Business So Simple

Hi, I am business consultant working with a team of Chartered Accountants, Company Secretaries, Lawyers & MBAs. I am promoter of " Make Your Business So Simple" "Make Education So Simple" Make Life So Simple" Make Legal Affairs So Simple".

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