Every business owner is buried by information. There aren’t enough hours in the day to read, digest and then decide what you should act on. So how do you decide what to deal with today that can’t wait till tomorrow? Many business owners have dashboards that tell them how their companies are doing. Some electronic systems continuously scroll information about the company. Some use reports that are created weekly or monthly for the management team. It’s nice to have that information, but all those reports and all those numbers could cause your eyes to glaze over. TMI – Too much
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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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Lessons From My Father When I was in college I had no idea what courses to take, because I didn’t know what I wanted to be when I grew up. My dad told me “Learn as much as you can, about as many different subjects as you can, because the job you’re going to have 10 years from now hasn’t been created yet.” My dad was really smart, so I followed his advice. Now, some 50 years later, after my career has shifted more times than I care to count, I’m still learning as much as I can about as
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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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cash flow
Part of the I don’t know what I don’t know series Everyone wants more cash, and a business is no different. Cash pays your employees, buys raw materials and products that you sell, and pays for the building you’re in. You need to understand how much cash you have, when it’s coming in, and when you need to spend it. Here’s a few cash flow hints: Create a Cash Flow Forecast. Every day you look at how much cash you have in the bank. You do a quick calculation in your head about how much payroll is going to be,
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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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In my years of working with entrepreneurs, small business owners and even the top sales folks in companies there is one piece of ‘head trash’ that seems to be ever-present…Fear. Some of us were raised with a fear of speaking about money. Our parents taught us that if we had money we don’t talk about it because you don’t want anyone to know. Or if you don’t have money you don’t talk about it because you don’t want anyone to know. Money is something that can cause anxiety and, at its worst, it can lead to an inability to make
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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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The year is over. Your accountant did the hard part of creating the financial statements. You have the easy work of figuring out what they mean. But is that really the easy part? A quick review of your Income Statement and your Balance Sheet won’t tell you about the details of running your business, and the changes you need to make. Trend Analysis is actually an important monthly analysis. Let’s understand why Trend Analysis is so important. You know your business, and what good numbers look like. But even though you remember these numbers from last month, or even from
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