Myth: "If only we had more money coming in, everything would work out."
Reality: More income (sales) does not necessarily change the bottom line. More money coming in is usually matched by more money going out. This is because most businesses are "programmed" for a certain relationship between income and outflow. The chain must be broken ... discipline must be put in place so that profit is made at the level of revenues at the present time!
Myth: "Financial success ... well being is defined by how much money the company earns."
Reality: Financial success is really about how much a business keeps of what it "earns" not how much it earns. To build "wealth", a company must consistently earn more than it spends. Profit! Profit! Profit!..... Profit!
Myth: "In an inflationary economy, using credit ... borrowing .. is wise because it allows the company to buy what it needs (wants) and pay it off later ... when money will be worth less."
Realty: Debt is bondage and in most cases should be avoided whenever possible.
Myth: "Once in debt, it is almost impossible to get out."
Reality: Debt can be learned from and reversed. The first step is to alter the behavior that created the debt. The second is to work out a plan with the debtors to work it down.
Myth: "If the economy were better, we'd make more money."
Realty: Putting the blame outside the company does nothing to solve the company's money problems. Some company is "getting the work" ... how do you insure that it is your company?
Myth: "Money is the root of all evil."
Reality: In business ... money .. profit .. is the only reason to exist. The profit the company makes allows the owners, the employees, the vendors, and the customers to contribute more to the economy and their individual life styles ... quality of life. Without PROFIT there is no employment or growth!
(Created by the Organization for Entreprenurial Content Staff)
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