This past Christmas my wife gave me a FitBit. I’m a numbers nerd, so the ability to see my heart rate resting and during exercise, number of calories burned and consumed, how much sleep and the quality of it and how much water I drink all appealed to me. I kind of gave myself a…
I worked with a business owner for that past two years that was coming off a dismal year in 2014. They had a break out year in 2015 making close to $6 million and $500,000 in profit and successfully sold the business last year. During one of our coaching sessions he asked me, “Where’s the…
What is leverage? Leverage is the use of borrowed money to increase sales and profits. It is measured as a ratio of total debt/total equity. The greater the amount of debt, the greater the leverage you have in your business. I think I bring a unique perspective to this topic because for 32 years of…
It’s that time of year again where many of us are pulling together all of our items needed for the CPA to prepare our corporate and individual tax returns. Many of my clients had record years last year, so it’s even more important to begin the tax planning process well before year end. From what…
The title of this article may be a little confusing, but let me de-mystify it if I can. In your business, you need funding for certain things. You might be buying a business, a building, a piece of equipment or just need funds to meet operating expenses including payroll. These things I just identified are…
You might be in a growth phase of your business. Growth always requires cash and cash is generally at a premium. Further, there are some traps to be avoided as you grow. Here’s 3 to watch out for.
Our two most recent posts, we’ve discussed that there are 4 critical items to understand your financials. 3 come from the balance sheet (asset quality, liquidity and leverage) and the 4th comes from the income statement (profitability).
In our last post, we discussed that of the 4 critical items, (Profitability, Asset Quality, Liquidity and Leverage) 3 of them are from the Balance Sheet. The 4th, Profitability is on the Profit and Loss Statement, sometimes called the P&L or the Income Statement.
We believe it’s critical for every business owner to know how to manage money once it’s in the business rather than just making sales. And it can be even more impactful if all employees are empowered to know how the decisions they make affect the bottom line and top line of the business. In order…
I thought this would be a good follow-up to my last post “5 Things to Know Before You Borrow.” Many of us get an annual physical, the doctor checks us out to see how things look like cholesterol, blood pressure, heart rate and respiration and compare them to last year. We want to manage our…
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