You probably never thought of your business as standing on five legs. If you have a successful business then the five legs are present and you are in control of all five. Break one of the legs and your business could be seriously curtailed and even cause bankruptcy.
What businesses use the five legs?
Some of them are:
Walmart, Bank of America, Exxon Oil Co., doctors, lawyers, farmers, every retail and millions of home owners. In other words, if you want profitable results from your cash flow, you need the five legs to stand on.
What are the five legs you must have for support?
- Sales, and / or income.
- Expense control.
- Profit margin.
- Investment control.
- Business loss control, known and unknown.
If there was a business psychiatrist he would urge you to balance your attention on each item to obtain maximum results in profits.
Getting to know your legs.
Tag and attach every item you can see in your sales area or office and attach it to one or more of the legs. Oddly enough, every item you see will fall into the expense category as well as some of the others. A fluorescent light fixture is expense, plus it also attaches to the sales leg.
A pair of gloves offered for sale by a retailer connects to all five legs. Sales, expense, profit margin, investment and unknown loss if they are shoplifted.
When you can tag every item in your business to one or more of the legs, you have achieved the beginning of financial control. How well you apply your control, will be spelled out as profits.