In running a business, what's the best thing to consider? gross profit, net profit or cash flow?
140390
I'd have to say cash flow, because without cash, you basically cannot achieve your business goals. net and gross profit are good if you're looking for an investor, but even then, they want to know your cash flow...where your cash is going and how much cash do you have at any given time. if you're borrowing money, your lender will also want to know your cash flow so that they can know if you'll have enough to pay off the debt. \n\nSo yes, in my opinion, cash flow is the most important. as they say, "cash is king"!!!
174817
You have to consider several aspects.\n\n1. The product\n2. The market\n3. Environement analysis\n4. Organization\n5. Commercial Plan\n6. Economic feasibility\n\nwhat figures, basically, Sales forecasting, Income budget, Profit & Loss, Cash Flow.\n\nRegards,\nAB\nAB.
28505
i believe business is better, business is a big realm and it always gives you the chance to go higher in the hierarchical system. accounting will most probably keep you as an accountant, senior accountant, or chief accounant.
129215
Short answer: you can't.\n\nTake a corporate budget; you have limited financial resources to allocate.  Marketing will want increased dollars and will make a good case for it.  Higher product visibility means higher sales volume, therefore higher revenue, therefore higher gross profit.  Manufacturing will want more dollars and will make a good case for it.  Better equipment means lower manufacturing costs, means higher gross profit.  Research and Development will want more dollars and make a good case for it.  Better products means higher sales volume, therefore higher gross profit.  Who's right?  As CEO, you make the decision based on personal experience and anecdotal evidence from other companies; you just do your best.\n\nAnd you can't even know if it was correct after the fact, because even if your decision yields a profit, a different decision might have meant more profit.  And, heck, even if you somehow *could* know that one way worked out for a better profit for the upcoming fiscal year, the other might have been better long-term so you have to weigh that decision.\n\nBottom line, you can never *ensure* the resources are correctly allocated, you can only ensure that every effort is made to utilize the resources in the best possible fashion for the company's long-term and short-term success.  You do that by bringing the best human resources to the table, allow full input into the process, then go for it.
272272
of course ethics. do not aim for profit if you did'nt establish the quality of your business. ethics is always one of the characteristics to have a progressive business. always remember that in order for you to achieve quality you should have ehtics in your heart first. therefore ethics comes first before profit
841494
as with any business, you would like a growth and profit from everything you do...movies are touch and go. usually the margin is 10% in big production companies. up to 12%. any double-digit gain over cost is considered a success. this helps the company market other projects they feel may not be so profitable...lets them take risks.
940038
I think the BBA, but definitely take some tax courses - the single most valuable course I ever took was tax, but there is a lot more to running a business than just the tax aspects.\n\nGood luck to you
1164172
which one has positive / bigger cash flow from operation? which one, in the long one, has operating cash flow that can sustain the other activities (financing and investing)?
870846
Do you mean, "What's better"?  It depends. Are you moral? Then validity is more important. Are you a greedy, no-conscience pig? Then obviously profitability is more important. \n\nTake the drug companies, for example. A good number of them are clearly more interested in profitability than in validity.
310160
Gross profit equals gross income less expenses.  Another way of putting it would be Earnings before interest, tax and depreciation allowance or EBITDA.
58481
It depends on your interests. All small businesses start off slowly, so it's best to start one that you are happy to work with. Mine took a few years to really start making profit. I was breaking even, but that is because I was putting my earnings back into my business. Now I update as I need to, and still have profit. Good luck!
927113
Net cash flow contains:\n1) Operating cash flow\n2) Cash flows from/for investments\n3) Cash flows from/for financing\n\nHence, Net cash flow is different because it includes two more classes of cash flow.  An example of cash flows from investments is investment into equity. Examples of cash flows from financing are principal payments on debt or raising of funds from the equity market (e.g. IPO). \n\nThere will be slight variations on what is included in Operating Cash Flows, Cash flow from Investments and Cash flows from financing depending on which country you are in because each country uses different "Generally Accepted Accounting Principles".
821820
in really simple terms, your profit is how much you made on the sale.  for example, if you sold an item that cost you $40 to make for $100, your gross profit is $60.   you also had expenses of $25 (taxes, etc).  your net income is $35\nyour profit margin is usually given as a %. (net income divided by revenue)\n= 35/100 = 35%\n\nnote that there is a gross profit margin and a net profit margin.
789907
Typically, a business is valued either using EBITDA (earnings before interest taxes and amortization) or by looking at their NPV (net present value of cash flow). It can also be valued by looking at asset size.\n\nIn this case, I would go with EBITDA since it is a service business with no assets and NPV might not be applicable since the rent roll is relatively small.
708340
Finance is the First Place to choose.\nHR Stands in the Second Place.\nMarketing goes to the  Third Place.
145610
One, his answer is true, but, in competition, you loose money on one part, but make up profit in another.  Say like for instance in Wal-Mart.  Every customer needs household chemicals, foods, etc.  Not every item, will you be losing profit.  You still have your higher profit items, that a good merchant will push to make up for in sales.  For instance, if you are losing profit in paper towels, than you will cross merchandise a paper towel holder, that is at a 50% profit. Also, if you bring in the customer, there is still that high profit department, that a customer will shop.  A good business knows how to equal out the margin. The only downside to competion, is within the businesses.  If a business can't hang with another, or know how to manage, their money, staff, and most importantely, how to take care of the customer, than they will loose.  A good merchant doesnt see a loss, but see's profit.
229565
Word to the wise ....If your company nets less than $150,000....stay a sole prop...if it is more, it is time to consider going inc. Keep in mind, there is more paperwork when it comes to all your taxes and you will need a great CPA. Also look at the profit margin for your last few years, How tight was it... Did you break even or make money. You will be slapped with a franchise tax but it will be over a year away because it is based on your previous years income. MORE TAXES....UGH! I would also complete a risk assessment. R U in a company or business that could very easily become victim to a lawsuit??? If so, INC is the way to go! Protect your personal assets! Good Luck and I hope this helped!!!