
This comes from the longer quote - ‘Turnover is vanity, Profit is sanity, Cashflow is king’. 👑
Most businesses die because of lack of liquidity, despite having good turnover. However, with builds taking months or years, you need to ensure you can ride out the lumps and bumps that come along the way. Consider if you can have a trading element to your business that creates reliable profit if you are also doing ‘lumpy’ developments.
Investment property, either residential or commercial, whilst not as exciting for some, creates a solid foundation that builds slowly over years (if correctly bought), to smooth out the peaks and troughs of a development business. And manage cashflow with reliable KPIs, measured at least monthly.
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