KPIs, Key Performance Indicators, are an important way for any manager or business owner to keep track of how he or she is doing. Remember one key point – If you don’t measure it, you can’t improve it. Which KPIs should you use to determine the success of your business? It would be nice and easy to tell you the six (6) most important KPIs for your business. The problem is that each business is different, and to make the decisions more difficult, each business owner has different goals. So how do you determine what KPIs are the ones that
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You created your budget last fall, and you were relieved that you completed the task. You don’t need to worry about it for another year. But what is the reason that you created the budget? If it was just to put a target on your company’s back for this year, then you are missing the opportunity to have another planning tool at your fingertips. Let’s look at three major areas of your budget to see how it can help you through this next year. Revenue and Gross Margin There are a lot of factors that go into your revenue numbers:
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The market has hit dizzying heights, the tax bill has boosted corporate earnings, and consumer confidence is up. The effects of International trade trickle down to the small businessman. We all recognize that as the economy goes, so goes the small business. Whether your business is B2B or B2C, it doesn’t matter. You will benefit or suffer just like everyone else will, when it happens. Of course, I mean when the Recession hits. But things are going so well!! Everyone realizes that there is a business cycle. During the highs, many companies succeed in spite of themselves. Some will make
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Part of the I don’t know what I don’t know series This is seemingly a very simple topic, but it certainly can have a dramatic impact on the cash flow of your business, because it can impact both sides of your ledger – your Accounts Receivable and your Accounts Payable. What does it actually mean to give someone Payment Terms? It is the period of time that you give your customers to pay their bills. But it can be more complex than just that. When someone sends you an invoice that gives 2/10N30 payment terms, do you really know what
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Credit Umbrella IDK Series
Part of the I don’t know what I don’t know series No business owner wants to borrow money. It strains your emotions, costs you interest, and eats up valuable staff time. Properly used, credit can be a boon, because it can propel your business to the next level. Or maybe it’s a safety net so you can sleep at night. What are some special things that you should know? Credit costs money – Borrowing money costs more than just interest. Origination Fees – If you’re borrowing from the bank, they charge you to initiate the loan. Commitment Fees – They
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