Reactive vs. Proactive

In the video, we discuss lead cash reports. This should help you learn a very valuable lesson in business management, specifically the difference between proactive and reactive management. Being reactive, which means making decisions as they come up, often leaves you with no idea exactly where you really are or what you need to do to get where you need to be. One approach you can take, which I personally use, is to set your revenue for the year at the beginning of that year, then break that down into what it needs to be per month and per product. This way, if you fall behind on one month, you know exactly how much you need to catch up by and, if you end up doing better than you thought, you know you don’t need to push as hard.

One thing we recommend is that you put your profit into its own account and don’t touch it until the end of the year. That way, you can be sure that the profit you’re taking out of your business is real profit and that you won’t need it for something else later, like to make up the shortfall in a slow month. As soon as you start taking money out of that account regularly, there’s a good chance you’ll find yourself in trouble later when you need it.

We have what we call Yellow Pad reports, as well as Excel spreadsheets. We highly recommend that you start off by using the yellow pad report and manually tracking (yes, with pencil) for the first few months, until you are sure you fully understand the reports and how they work. Then, you can get fancy by using the Excel spreadsheets.

Yellow Pad Year Lead Cash Report

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Yellow Pad Month Lead Cash Report

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Detailed Directions for Yellow Pad Yearly Report

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Detailed Directions for Yellow Pad Monthly Report

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Excel Lead Cash Report

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