keep more of your money cut your taxes
It’s too late to reduce costs or increase sales if you haven’t been doing it all year. So how can you improve your company’s performance before year end? Business success is not defined just by higher Net Income, it’s Free Cash Flow that’s critical. That’s spendable cash. You can reduce your taxes without reducing your Free Cash Flow. Review the assets on your balance sheet. What are the REAL numbers? By correcting those balances, you might reduce your assets, thereby reducing Net Income and your taxes. Correct your inventory – reducing the value reduces your taxes. A physical inventory will
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employee bonuses
It’s time for the holidays, and along with lighting candles and decorating trees, drinking mulled cider and champagne, it’s time for the Year End Bonus, something anticipated by every employee. As a business owner, first decide why you’re giving the bonus. That will determine the timing of the bonus, and how you calculate the amount that you’re giving. The bonus can be a uniform holiday gift, a reward for the company’s performance in the prior year, or a reward for the work each employee did. Whatever you do, each employee will remember exactly what you gave them last year. It’s
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Business owners make decisions daily, either by using Intuition or Knowledge. In the initial stages of their business, entrepreneurs use Intuition in making those start-up decisions. Then, the practical pieces of running a business come from Knowledge. To learn as quickly as possible, magazines are thumbed through, books are scanned, emails may be largely ignored. As a result, decisions are made from the gut. How many business owners give their financial reports that same indifferent stare? Your business is built on data. Are you making use of your available tools to make the right decisions? You need to know in
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Scalability is the key to growing your business. How can you serve new customers, additional inventory and manufacturing space? Can you do it now, or do you wait and hope you don’t lose customers? It’s a balancing act, and there are no easy answers. Cash Needs – Understand the cash needs of ANY expansion plans. Some plans require long-term commitments. A cash flow forecast showing each expansion opportunity will alert you to upcoming problems. If you run out of cash – everything stops. Plan so that you know how much cash is needed not just today, but down the road.
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decision making
How do you make decisions? How do you gather the information you need? How long do you wait for that information? How much time do you have to make the decision? What happens if you DON’T decide? A business owner’s day is filled with decisions. What resources that will need to be allocated? What’s the impact of moving or hiring staff? Should you buy more inventory now? Sometimes decisions get delayed. They may be delayed because information isn’t available. They may be delayed because there is still time to decide. But, sometimes you’re just not ready. You feel that delay
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good or bad cash decisions
We have all run short of cash.  So, you won’t eat out till payday.  But when your business runs out of cash, it’s not a joking matter.  You can’t tell your employees to wait another week for payday. There are steps you can take to find extra cash.  But when you get too creative, you will have your conscience shouting NO!  If your stomach turns because you aren’t sure if you should do it or not, the answer is DON’T.  Here are twelve things you shouldn’t do.  They will come around and bite you in the butt.  Guaranteed. Don’t make
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cash flow
Every business ends up short of cash from time to time. But there’s short of cash, and then there’s SHORT OF CASH. In the first case, you’re going to have to wait a few months to buy that new production machine. In the second, you need to figure out some way of covering payroll on Friday. No one needs, or likes that kind of “short.” So, if you are so short of cash that you can’t cover payroll, what can you do to jump that gap, to allow you to get over the hump? Here are twelve things you can
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decision making
The most frequent activity in any business is Decision Making. Most of those decisions we don’t even consider decisions, because the answers come so naturally. We don’t truly “decide,” we just “do.” But when it comes to decisions in your business, what process, what model do you usually follow? Some approaches to decision making involve others on your team. Some involve your just “deciding.” But in any case, you need to get the facts and consider the alternatives. When you do that, you have a basis and a path that you’ve followed to get to your end point. Here are
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a hand dropping dollar bills down a conventional toilet to be flushed away
No one is ambivalent about staff meetings. You either think they’re critical to running your business, or you consider them a total waste of time. Are your staff meetings an effective use of time and money for your company? Think about how long your meetings take. We have one client whose weekly staff meetings sometimes take 6 hours!! When you consider how much that meeting costs, it’s no joke at all. How many people attend your staff meeting and what is their hourly rate? The owner @ $200/hour. 2 Exec VPs @ $80/hour; 3 middle level managers at $60/hour; 4
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Two businessman analyze charts diagrams. Financial analysis statistics reporting strategy development.
Some small business owners have CFOs working for them. The owner is proud that he has prepared his company for the next great leap forward by his strategic staffing decision. It’s not unusual in a small company for the Accounting Manager to become the Controller and then become the CFO. But without the requisite education, mindset and experience, just having more years on the job doesn’t prepare the person for that role. Let’s look at the difference between a Controller and a CFO. At the basic level, a Controller is Tactical, whereas a CFO is Strategic. What does that mean
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