Navigating Profit & Loss: The Ultimate Guide to Sustainable Business Finances

<p>In today&rsquo;s dynamic business landscape, it&rsquo;s surprising to learn that many companies still operate with incomplete financial data for their day-to-day operations.</p> <p>This issue revolves around what I have learned to call the &ldquo;POT&rdquo; theory, a financial approach that some businesses continue to follow despite its inherent risks and limitations.</p> <p>Years ago, I was introduced to this concept by one of my mentors, and it seemed perplexing to think that companies operated in such a manner.</p> <p>However, as time has passed, I&rsquo;ve encountered numerous businesses that lack a comprehensive understanding of their true costs and rely on this &ldquo;POT&rdquo; theory to guide them.</p> <p>The core of the &ldquo;POT&rdquo; theory is simple: companies start the year with a sum of money in the &ldquo;POT&rdquo; or actually the bank.</p> <p>At year-end, they take a look inside this metaphorical pot to determine whether they&rsquo;ve accumulated more money (indicating profit) or less (indicating a loss).</p> <p>This approach is not ideal for running a successful business, yet it persists.</p> <p>Many small businesses either do not possess the complete financial data they need or fail to track it effectively.</p> <p><a href="https://medium.com/@randyfry75/navigating-profit-loss-the-ultimate-guide-to-sustainable-business-finances-ce33e903c7d1"><strong>Visit Now</strong></a></p>