If you’re an entrepreneur that wants to pass your company down to the next generation, you want to do everything that you can to make sure that your successor does well. Beyond knowledge of the services and products that your company sells, knowing how your company operates, especially in the areas of administration and finance, will help them continue to grow your business. In our last article, we talked about the basic functions of a CFO – Accounting and Finance. But there are other key areas of business operation that usually fall under the purview of the CFO as well
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Nobody goes into business because they know how to read a financial statement. And yet, knowing what those statements tell you is critical to taking your company to the next level. What are the kind of questions that you’re asking that could be answered by your own CFO?  Larry Chester, president of CFO Simplified explains the kinds of issues that your own CFO could help you address.  Click View More to View Video!
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Every large company has a CFO that provides their management with financial insights. That is the information that allows them to decide what changes should be made to improve company performance and their bottom line. Why should they have the exclusive benefit of that kind of senior financial advice? View this video because that insightful information isn’t just for the big companies. It’s also available for you. Do you appreciate what that would mean to your company? Click View More to View Video!
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As business valuators and advisors, we are often asked, “What can I do to make my company more valuable?” While the value of a business is dependent upon myriad factors, measures that increase cash flow, decrease risk, or increase growth prospects for a business will have a positive effect on value. But what steps can you as a business owner take to bolster the value of your company? There are several strategies that you can implement (apart from obvious changes such as raising prices, cutting costs, or just hoping a rising economic tide will lead to continued growth) that will
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training in all departments
How do family businesses prepare the next generation to take over? Early in my career, I worked at a publicly held gas pipeline company. Management identified newly hired “stars,” and they would be put on a fast track, spending each of the next 4 years switching from one department to another, allowing them to learn all about the company, from the view of each operating department, from marketing to HR, from business operations to accounting. Though they didn’t become experts in any of these areas, they learned the impact of each department on the company overall. If you are an
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co-owners of business divorcing
As emotionally trying as a divorce can be, owners of closely held businesses are faced with the additional pressure of keeping intact what may have taken years of blood, sweat and tears to bring into fruition and make profitable: their business. Adding to that is the weight of assuring other owners, board members and the like that the soon-to-be ex-spouse will not unravel years of hard work. Simply put, spouses who are business owners and are looking at the dissolution of their marriage face a double whammy of stress and angst. The Illinois Marriage and Dissolution of Marriage Act, the
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CFO spelled out using image made from US dollar
In many companies, people are concerned about the pecking order. Who has the most power, the most pay, the most responsibility? Over the years, I’ve become less concerned about those ratings. My interest is always in who has the most information. Because the old cliché is true – Information is Power. But for the context of this article, information is the source of decision-making. It is information that brings people together, that draws people to that office down the hall. Who is it that possesses the information that drives the company forward? Who is the person that has the power
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What is a brand? There are many definitions of a brand, but I like this definition from serial entrepreneur and best-selling author Allan Dib best. Dib defines a brand as “the personality of a business.” The personality has these six attributes: What’s its name? (brand name or trademark) What does it wear? (design or trade dress) How does it communicate? (positioning) What are its core values and what does it stand for? (brand promise) Who does it associate with? (target market) Is it well known? (brand awareness and fame) In order to build a successful brand, you must be able
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We have all made mistakes. But have you made any monumental ones? Have you made either a personal or business decision that was so horrific that it cost you dearly, either in terms of money, time or relationships? The fact that you made one isn’t the issue. To me the issue is how you recovered from it, how you returned from the disaster, how you started again. If it wasn’t possible to recover from those monumental errors, the streets would be littered with people, businesses and personal tragedies. We all read about millionaires that have lost their fortunes many times
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For many business owners, the sale of their business is a once in a lifetime event, perhaps the culmination of years of hard work to grow the value of the business. In many cases, the business represents the owner’s principal asset to fund a comfortable retirement. Even if retirement is not the motivation, selling business owners are always focused on retaining as much of the proceeds from the sale of their business as possible. Unfortunately, business owners have to share part of their good fortune (and the results of their hard work) with Uncle Sam in the form of taxes.
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