Companies run into trouble from time to time. But why do some companies survive those troubles and others don’t? To me, there are two issues. First, it’s knowing when to ask for help. Second, it’s being willing to follow the advice that you’re given. But not everyone waits till they’re in trouble to ask for help. I remember getting a call from a business owner who said he was doing pretty well, he just wanted some help because he “didn’t know what he didn’t know.” Sometimes I meet with companies that are in a different situation. They have waited so
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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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bussinessman stepping out for vacation
5 things to keep your eyes on this summer It’s summer, and you’re planning a three-day weekend or vacation with your kids. What does that mean for your business? Here are some things to watch during the summer months. Budgeting – Remember that your budget is your business plan for the year. Compare your budget to your actual YTD results. It’s important to make changes to your company operations so they will get you to where you need to be to meet your goals. Inventory Control – You should be continually evaluating your inventory. Do you have sufficient stock in
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Are the people who work for you honest? Of course – or are they? Internal controls are designed to keep your business safe. No matter how honest people are, when they get into trouble, it’s just a short step from borrowing $20 from petty cash to issuing a check to themselves (or a fake company) and signing it. Even if they’re just “borrowing” from you, it’s still theft. Every year, owners discover that the office manager they trusted has been writing checks to themselves for $1,000 to $10,000 a month for the last 10 years. The losses run from thousands
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Think about what records are important to your business. Your situation is no different from any other business. Everyone has the same need for recordkeeping. You need to be able to document what your business did. It may be because your accountant wants to verify numbers before he puts your taxes together. It might be because your bank wants to do a field audit. It might be because your customer is looking for verification for a shipment they received. Documentation is the backbone of your business. If you can’t document what you’ve done, then you can’t verify that your reports
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