Reserve profit for longterm financial stability from "summary" of Profit First by Mike Michalowicz
The key to achieving long-term financial stability in your business is to consistently set aside a portion of your profits as reserve profit. By allocating a percentage of your earnings to this reserve fund, you are ensuring that you have a financial cushion to fall back on during lean times. This reserve profit serves as a safety net for your business, allowing you to weather unexpected expenses, fluctuations in revenue, or economic downturns without having to resort to taking out loans or dipping into your operating expenses. By building up this reserve fund over time, you are creating a strong financial foundation for your business that will help you sustain and grow over the long term. In order to effectively reserve profit fo...
Similar Posts
Set clear financial goals and work towards them
Setting clear financial goals is crucial in achieving financial success. Without a clear goal in mind, it is easy to get lost o...
Adapt to change and be flexible in your approach
In business, the ability to adapt to change and be flexible in your approach is crucial. This means being open to new ideas, pe...
Strategic agility allows organizations to adapt quickly to market changes
Strategic agility is the ability of an organization to quickly respond and adapt to changes in the market. This concept is cruc...
Avoid emotional decisionmaking
When it comes to making decisions about money, emotions can often cloud our judgment. We may be swayed by fear, greed, or impul...
Accept that money is a tool, not a measure of worth
Money is a funny thing. We often think of it as a measure of our worth. But in reality, money is just a tool. It's a tool that ...
Avoiding impulsive purchases
The concept of avoiding impulsive purchases is about being mindful of our spending habits and making thoughtful decisions when ...
Don't let emotions dictate your investment decisions
Investing in the stock market can be a daunting task for many individuals. The ups and downs of the market can evoke strong emo...
Money is a tool for living a fulfilling life, not the end goal
Money is a peculiar thing. People often obsess over it, viewing it as the ultimate goal in life. They believe that once they ac...
Learn from your mistakes and use them as stepping stones to success
In the game of Monopoly, the objective is to become financially free by buying properties and collecting rent. The game teaches...
Strategic investments require research and patience
To be successful in making strategic investments, one must be willing to put in the time and effort to conduct thorough researc...