Ian Lawlor from JPA Brenson Lawlor Chartered Accountants advises The Hardware Journal readers on how best to use their profits.
Much of what you need to know about business can be summarised by the following phrase – ‘Revenue is Vanity. Profit is sanity. Cash is reality’, That’s it. That’s all you need to know. Assuming your sanity (though I know many who say to go into business that you have to be a bit crazy!), then what do you do with the profit? (a very nice problem to have)
For those in business you know that you can have the biggest turnover in the world, trillions of Euro if you can count that much, but if you’re not making a profit you’re out of business. Hence that sanity bit. Every business owner is in business to make a profit. Quite literally, that’s the bottom line.
For early-stagers crossing the line from red ink (loss) to black ink (profit) can be difficult (if it was easy everybody would be doing it). Sometimes it feels near impossible. Indeed, sometimes it is impossible. However, entrepreneurs are, by their nature, grafters and through hard work and perseverance the day comes when the business turns a profit. So well done.
But who would ever think that a profit could cause you a headache? Well, not quite something you have to take a Panadol for, but something you should definitely seek advice about, ideally from your company doctor, also known as your accountant. You can, of course, use the profit to go on that six-month cruise you always dreamt of, but that could also see the end of your business, so keep dreaming. What you actually need is advice on what to do with any profits that will ensure the long-term success and future growth of your business, the wellspring of your wealth. Here are some of our best ideas:
Developing your Business
At JPA Brenson Lawlor, we believe if you create a positive company culture with a happy workforce, this will lead to increase productivity.
You – Business Owner
Ian Lawlor – Managing Partner firstname.lastname@example.org
This Business Support article featured in the May June 2019 edition of The Hardware Journal.