Soon it will be time to close the books on 2017 and your thoughts are shifting to 2018. Likely, there are some things that went quite well, but if you had a do-over, there are things that you may have done differently. To stimulate your thinking towards next year, here are 4 critical things to…
KPI’s, key performance indicators are critical for managing your business. You can’t manage what you don’t measure, right? Goals allow us to stay focused and manage our businesses effectively. Here are 4 KPI’s for you consider: Liquidity– You may be profitable, but how much cash do you have in your bank account? Measure your cash…
It’s that time of year again when we begin to close the books on the year and look ahead to what the new year might bring. The assumptions you use are critical to your profit and loss and balance sheet forecasts. This is especially true if you will use these projections to attempt to obtain…
How much money are you going to make this year? Since 75% of the year is over, October and November are good months to get with your CPA and discuss tax strategies. While it’s a good idea to minimize taxes, many of you could have cash flow or leverage covenants on the credit commitments with…
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…
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