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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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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We truly don’t know when the recession is coming. It might be in six weeks or six months. But historical financial records show that one is coming. So, how can you prepare your company to better handle the recession when it does come? Last month, I discussed how carefully managing your Accounts Receivable and Inventory can help prepare you for what’s coming. This month let’s take a look at some other crucial business matters. Manage your use of credit Carefully use your credit line. A credit line should never be used to cover operating losses. If you are near the
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I was visiting with a business owner the other day, and we were talking about his Cash Flow. The chart he showed me had a slow, but steady decline in cash flow over the past two years. I asked him what he was going to do about it, and he took a long ruler, laid it on the trend line, and pointed at the point where the cash flow hit $0. He said “That’s when I leave the company.” This raises a lot of issues. The biggest one, and one I hear from an increasing number of business owners is
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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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