Sometime ago I read an article about Pete Maravich, former LSU and NBA basketball player and what made him so successful. When asked that question by the sportswriter, he answered “before I take the shot, I can’t see myself missing.” While it would be easy to interpret that comment as arrogant, the article stated that what he…
If you’re like me, you’re reflecting on 2015 and setting the table for 2016. What are you going to start doing, stop doing and keep doing? One of the ways of determining this is to look at the key metrics of your business to determine if you’re on the right track for success or what…
You’re busy running your business and all of a sudden you get a phone call from a potential suitor that is interested in buying your business. You’re flattered, intrigued, you might even consider selling. But what’s the value of your business? How do you structure the sale? What’s going to be your tax liability? What’s…
Many business owners look at their profit and loss statement and determine if they’re profitable or not. How is revenue tracking against last month or last year? Any changes in gross or net profit margin? If I’m making money then everything must be ok. There is some validity to that way of thinking.
Two things have become increasingly apparent to me. If you’re a big company, you have good access to capital and can find the funding needed to finance your business. Small companies don’t have that access to capital and finding funding is difficult. Here’s why:
So, you took out a line of credit, but you forgot about the 30 day annual payout requirement on the line when you signed the commitment letter. You don’t have the cash to pay the line in full. So, what’s next? Maybe you took out a term loan for a piece of equipment. Cash flow…
Have you ever had the experience where sales and growth were either happening way too fast or not fast enough? The success of both requires management on the part of the owner and his or her management team. The size of the business will determine what the division of labor is for these management tasks….
Success should not come as a surprise. It’s something you’ve planned for. You have the right people in place with good processes and execution.
The Great Recession is clearly a thing of the past. The economy appears to be expanding. Businesses are seeing sales, growth, and profits. Entrepreneurs are experimenting with new products and markets, starting new divisions and making investments in people.
When you first start your business and begin recording business transactions, you must decide whether to use cash basis or accrual basis accounting. The big difference is in how you record your cash transactions. Many people use cash basis accounting for taxes and accrual basis for managing the business. Here are 5 things you must…
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