Up Your Cash Flow / Goldstein 23-25

25 ...knock-the-world-dead-with-volume-and spend,-spend,-spend philosophy is practiced far too often.

Most people involved in small companies spend a great deal of time attempting to increase sales but do little to control operating expenses. Certainly, I wouldn't abandon the notion of increasing volume. But remember that every dollar saved in expenses results in a dollar more in profit. A one-to-one ratio. It may take $10, $15, $20 or even more of increased volume to produce the same one dollar profit. Thus, when you view the profound impact that controlling expenses has on your profitability, it becomes essential that all efforts be made to control the expenses of your business.

FINANCIAL STATEMENTS SHOULD TELL YOU A STORY.

What are you spending money on?