What is the saying about turnover?

What is the saying about turnover?

Turnover is vanity, profit is sanity, but cash is king for your business.

What is vanity sanity?

As nouns the difference between sanity and vanity is that sanity is the condition of being sane while vanity is that which is vain, futile, or worthless; that which is of no value, use or profit.

Why profit is sanity?

Profit is the amount of money that a business makes after subtracting expenses from turnover. To have a true business, you need something that produces profits and, ideally, can be sold. Without profits you will never be able to invest in your business, which is necessary if you want to expand.

Who is Alan miltz?

Alan Miltz is the co-founder of Cash Flow Story and co-author of Scaling Up, having written the financial component of the book. Alan’s dedicated his life to making numbers understandable in business. He’s created and developed techniques over the last 25 years to help businesses better understand their cash flow.

What does the saying cash is king mean?

“Cash is king” is a slang term reflecting the belief that money (cash) is more valuable than any other form of investment tools, such as stocks or bonds. This phrase is often used when prices in the securities market are high, and investors decide to save their cash for when prices are cheaper.

Why cash is king in business?

“Cash is king” is a slang term reflecting the belief that money (cash) is more valuable than any other form of investment tools, such as stocks or bonds. Many businesses only accept cash as a form of payment, as opposed to credit cards or checks, hence the phrase “cash is king.”

What’s the saying about revenue/profit and cash is king?

Revenue is Vanity, Profit is Sanity and Cash is King – Alan Miltz.

Does turnover cause profit?

Turnover in business is not the same as profit, although people often confuse the two: turnover is your total business income during a set period of time – in other words, the net sales figure. profit, on the other hand, refers to your earnings that are left after expenses have been deducted.

What is the relationship between profit and turnover?

Turnover is the net sales generated by a business, while profit is the residual earnings of a business after all expenses have been charged against net sales. Thus, turnover and profit are essentially the beginning and ending points of the income statement – the top-line revenues and the bottom-line results.

Why cash not profit is king?

This phrase is often used when prices in the securities market are high, and investors decide to save their cash for when prices are cheaper. Many businesses only accept cash as a form of payment, as opposed to credit cards or checks, hence the phrase “cash is king.”

Why is cash king in real estate?

On time closing: A cash buyer offers a seller a guaranteed on time closing. CASH is KING in real estate because it offers the seller more certainty that he’s going to close sooner and on time and at the agreed upon sales price.

Is profit vanity and cash reality?

The saying “turnover is vanity, profit is sanity and cash is reality” captures the problems that bankers see. Too often they are asked to fund unprofitable growth backed by hockey-stick financial forecasts which show profit and cash flow going down before the “magic” happens and everything is hunky dory once gain.

Do you prefer cash or profit turnover?

Turnover is vanity, profit is sanity but cash is king. I prefer my version, partly because of the alliterative endings of vanity, sanity and reality. Partly because there is nothing more real than having or not having cash in the bank with the payroll due to be paid.

Is your turnover a vanity?

In big businesses, the “turnover is vanity” problem is particularly acute. that’s because senior management pay is often based more on the size of the business than its profitability. That’s not an issue with business owners who are managing their businesses on a day-to-day business.

Is volume is vanity and profit is sanity is reality?

Volume is vanity, profit is sanity, cash is reality. Study economics for business with MIT. Gain a global economic perspective to help you make informed business decisions. , Systems Architect, Entrepreneur, and Policy Wonk. Have a grey beard. It’s a great line – but like many of the best quotes, it’s origins are probably lost to the winds of time.