Kaizen is the Japanese word for gradual continuous improvement. It simply means change for better. So, how does this apply to you and your business? As you begin to make plans for 2018, I’d like to challenge you to commit to making a series of 1% gradual continuous improvements in your business across the board….
Why is funding losses in your business with debt a bad idea? First, there are always two options when funding your business, one is with debt and the other is with equity. But many business owners would prefer to take the money out of their line of credit than take it out of their own…
Where’s the cash? Several years back, I had a client ask me if I’ve made $500,000 in profit why isn’t it in the bank account? A very good question I’m sure many of us have wondered. While profits are great, they don’t cover payroll, other operating expenses, bank loan payments and owner’s distributions. Cash does….
Growth always requires cash. Why? Many business owners are seeing a rapid increase in the demand for their products and services. The additional revenue, while good, can be a mixed blessing because it cost money to ramp up production if you manufacture or ramping up people if you’re in a service business. The added revenue…
Trying to get a line of credit? Frustrated with the bank process? You’re not alone. Navigating the banking landscape can be a very time consuming process. There are two questions you need to answer before you start. Are you bank ready? Are you bankable? What is bank ready? Bank ready is nothing more than being…
If you’re a service firm, how do you control direct labor costs? This is an area where I see many firms struggle. Direct labor tends to be the most significant cost for service firms. Most firms use a timesheet and record labor costs for specific jobs. However, the labor force wants to show they’re fully…
We’ve had a lot of interest in the prior line of credit (LOC) articles on choosing the right type of LOC and mistakes to avoid, so I wanted to continue discussing that topic since it seems to be pertinent. Watch out for these “gotchas” in your line of credit commitment letter. 1) Your commitment letter…
One of my mentors told me a long time ago, “the path of least resistance is what makes men and rivers crooked.” This is true when it pertains to getting a line of credit for your business. Sometimes our path of least resistance is obtaining a line of credit from a bank. Other times, there…
So, you’re getting ready to shop for a line of credit. What type do you need? How much and for how long? Are you OK with a borrowing base? If you don’t know the answers to these question, you could easily find yourself in the wrong type of line of credit and unable to meet…
I had the privilege of speaking with a group of investments managers last week. One of the points I emphasized was that most business owners are terribly undiversified and the largest asset they own is the investment in their closely held business. To make the diversification worse, the business is also the sole source of their…
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