Thursday, October 20, 2011

Do You Understand The Actual Cash Flow 'Value Measurement ' in Your Company?

By John Cleden




"Cash flow is a key measure of the value that you and your business deliver to other individual's lives", claims a top firm of accountants in farnborough.

Here's the remainder of what they had to say...

If you're not earning enough money, or if your company isn't making enough profit or creating sufficient money, then it's possible that you and your company aren't delivering adequate value.

Think about it for a minute. What is it the most regularly worthwhile, cash rich and successful companies have in common? The answer is they give large price which suggests that existing clients come back to buy from them again and again.

New patrons are regularly attracted as these corporations provide the products and services that folks need. Think Apple and the Apple Mac, the iPod and iTunes, the iPhone and most recently the iPad.

The only real way to keep purchasers long term is to regularly deliver massive value.

But if your company isn't creating the money your efforts deserve, it doesn't always mean that you, or the product or service you provide is not hugely valuable. It may be you are not leveraging this worth to the widest audience. Perhaps you're not getting your message out in a way that tells your 'value story ' best.

If potential customers either do not know of you, or don't understand the 'value ' of what you do and how it's possible for you to help them achieve their goals, whether they be private, financial, etc, then you won't be making the money or profit that you ought to be.

Put an alternative way - you'll get everything in life and all of the money you would like, if you help enough folk to get what they desire!

So consider what you or your company are doing now. Be honest with yourself. Are you being the absolute best you can be in terms of what you give your clients? If not, what more could you do?

What are the most notable companies doing that you're not?

If you have a bunch of happy customers who love what you do, but you are still not earning, then the likelihood is that you aren't spreading your message widely enough. There are far more clients out there who desire what you have got, but regularly they don't know you exist.

Or, have you undervalued your service or product and set your prices too low? Are you charging a "same as the competition" price for something that is greatly superior to anything offered by your competitors?

The more you come up with clear answers to the previous questions, the more money will flow in the right path for you.

Speak soon...

John Cleden

Farnborough Accountants Guidance Archives.




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