Understanding your profit margins is a critical component of healthy financial management. With a product-oriented business, profit margins are often largely focused on tangible goods and materials that are easily quantifiable. However, if you are in a service-based business, understanding profit margins can become a bit trickier. For services, determining profit margins requires looking into more intangible factors and qualitative factors to figure out whether your business is really getting a good ROI or not.
Cash flow has a major impact on sustainability. Take a look at what happened in the early 2000s with the dot-coms,.
Occasionally, we get asked to help companies understand where and why they should allocate budget to improve.