10% Net Profit is the New Breakeven

In this video, you’ll learn how the following affect net profit and cash flow:

0: 25      Business income taxes for “pass-through” entities

1:44        Loan payments – interest and principal

2:57        Replenish cash reserves

3:37        Replace old assets to maintain current sales level

4:31        Fund future growth plans

5:50        The real cash balance is NOT the money leftover to pay the owner’s salary. Your salary is a high priority and should be included in the total expenses used to calculate net profit.

6:45        Two breakeven points, so your business does not run out of money – profit breakeven and cash flow breakeven.

7:09        Compare to only 6% net profit

8:39        What if net profit is only 3%

9:19        Classic sign you are stuck in a busy but broke cycle.

10:50     Benefits of using 10% net profit as your new breakeven point.

11:04     A truly profitable business generates the cash flow needed to not only operate but also plan for emergencies and save for the future.

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