Advising Finance and Small Business
If you are a financial advisor to small businesses, please don't try to use investment theory when explaining how they should manage business cash flow. You will end up with zero result. But this is what you CAN do:
First take all revenue and then reduce the cost of good purchased, installment and other costs that the owner must pay for each period and then convert it to a percentage before he/she take the difference as profit.
In my experience, the simpler you start with a small business owner, the better he/she will buy your engagement.
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