“Business pulse” refers to the rhythm and strength of cash flow in and out of a business, indicating its financial health and sustainability, similar to how a person’s pulse reflects their physical health.
Primary Implication
A struggling business must first stabilize its cash flow or go out of business because its cash outflows are frequently greater than its cash inflows. Once cash is in control through disciplined cash management you can then shift your focus to maximizing profits so that the cash that flows through your business is more than the cash that flows out. Cash in being greater than cash out is the only way to build sustainable, repeatable, and ever-growing cash reserves.
You best control your business through rhythm, so it does what you want it to do when it needs to be done. BUSINESSCPR will help you begin to develop a repeatable rhythm in your business that will lead to higher profits and predictable cash flow through disciplined reporting.
Overview
Each person’s pulse is the rhythmical pulsating of the arteries as blood is propelled through them with each beat of the heart. A pulse can be felt by applying firm fingertip pressure to the skin at sites where the arteries travel near the skin’s surface. It is measured most easily by feeling the arteries of the wrist or neck when surrounding muscles are relaxed. It is also measured near the ankles to confirm the quality of blood flow to the feet.
A normal resting heart rate for adult’s ranges from 60 to 100 beats per minute. Generally, a lower heart rate at rest implies more efficient heart function and better cardiovascular fitness.
When feeling for a pulse there is also an assessment of the force of the pulse to evaluate the strength of blood flow. You should visit your doctor if your heart rate is consistently above 100 beats per minute or below 60 beats per minute if you are not an athlete. You should immediately go to the doctor should you experience a rapid onset of shortness of breath, fainting, feeling dizziness, or lightheaded.
Business pulse is about the rhythm and strength of the cash flowing in and out of your business and whether the cash flowing in is at a profit or not. If the cash flowing in isn’t generating sufficient profits, you are spending more than you are taking in. Do this for too long, and your business will lose its ability to pump enough cash through your business to cover your financial obligations.
Your business will also suffer significant problems if you don’t pump enough cash through your business because of low sales triggering insufficient cash inflow to meet your cash out obligations. Anytime you have insufficient cash to cover your fixed costs, you have a problem. Fail to have enough cash to cover your variable costs, and you will accelerate your going out of business because you lose the ability to buy the cost of goods you need to complete a sale.
Highly profitable businesses become such because they consistently monitor the pulse of their business similar to how professional athletes monitor the strength of their pulse. Those that make the most money in business are vigilant in tracking week-to-week performance through a management scorecard. Absent a desire to use metrics, measures, standards, and indicators to manage your business by you need to at a minimum manage your cash flow from operations. Protecting your business from spending more than it takes in week-to-week is more critical than managing for profits when your business is in survival mode.
Should your goal be financial freedom resulting from substantial cash reserves then you need to manage your business for profits. The most efficient and effective way to do this is through the BUSINESSCPR Management System to develop a repeatable rhythm in your business that will lead to higher profits and predictable cash flow through disciplined reporting.