What’s the difference between GDP and many SME businesses?
A lofty question and not a joke as some readers may expect! My understanding of GDP is it measures the flow of money, not the stock of national assets, so in many respects gives the wrong impression versus say a metric that measures the stock of national assets? Now in conversations with ‘too’ many business owners they say their business is financially sound because they have a good flow of money through credit on one hand and debtors on the other. Like GDP this misses the point, it fools the business owner in to falsely thinking they have a healthy business when if one of more of their invoices fails to be paid they could soon end up in a cash flow crisis because they are not focusing on cash in bank. So if your business works on the GPP principle maybe its time to talk to me or one of our other 30 specialist business advisors at www.bpcadvisory.co.uk #cashflowmanagement #smallbusiness #bpcadvisory