More Revenue Will NOT Solve Your Problems

Last month I had a call with an ecommerce seller and he explained how overtime his sales were growing.

He was making money when he started, but now his bank accounts are getting smaller and he's having to take out loans to keep operating capital.

This is unfortunately all too common. He said something though, that many people believe in but is just a wrong assumption.

His words, and I quote, were "I believed that growing more revenues would solve my problems."

WRONG!! 

Here's why:

More revenue in a financial system where the margins are too tight will wreck your cash flow.

As we talked, I learned that his accounting system did not include any kind of margin analysis.

Because he is on cash books, he doesn't know how much he makes on each product or even in aggregate what his gross gross profit margin is.

Selling more of a product that is losing money is not the answer to your cash problems.

Spending more on ads to grow revenue on a product that has skinny margins also turns your profitability upside down in a hurry.

More revenue, while it is an easy answer, it is not always the right answer.

It's just more complicated than that. 

This is why we work to help you understand profitability and cash flow in our Cash Flow Accelerator.

We dive into the details and look at the transactions.

We face the facts and make decisions that will get results.

It's not an "easy answer" type of program. Sometimes there are tiers.

To solve your cash problems, watch our cash flow webinar or let's jump on a call to talk about a solution that will get you results. 

Cyndi