strategic planning
Have you developed your Strategic Plan?  Does it achieve your Vision for your company?  Setting Goals is actually critical to reaching them.  Whether it’s reaching a particular sales level, or being able to retire, unless you set a goal, you are being reactive, not proactive, and your result is at risk. Are you just planning for next year, or are you truly being Strategic?  Just as a budget defines WHERE you want your business to be at the end of the next year, the Strategic Plan defines WHAT you want your business to be in the future.  Here are the
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emotional cash flow
What is the one thing that most business owners are afraid they’re going to run out of? Cash, right? But in spite of the stress that this can create, there is probably nothing that has as much emotion surrounding it as Payroll. Face it. There is nothing more important to you – or your employees – than payroll. Some employees check their bank account every payday to assure that they got paid. When a company runs into Cash Flow issues, you can put off paying your suppliers. You might put off some loan payments. You can even put off your
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budget planning
You didn’t write the budget yourself, and you aren’t the only person responsible for managing it.  Budgeting isn’t a one-person job, and administering it isn’t solely your responsibility either. But just as you manage your business through others, you need the help of others to manage your company’s budget.  So, how do you get them on board? Create a team – Select a team of employees to be responsible for the budget. You have ultimate responsibility for the overall results, but sharing those responsibilities helps assure that the project is completed properly and involves more of the company. Lay out
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tools for budget planning
You worked hard to create your budget for 2018.  Do you use it as a tool to help guide your business during the year?  It’s your view about how your business was going to do this year.  If everything goes according to plan, you will reach your goal. But business isn’t stagnant.  It doesn’t stay the same month after month.  Your customers face similar challenges, and as their businesses change, yours will too.  So, if you are going to actively manage your business, actively managing your budget should be part of it. Here are four approaches to managing your budget:
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trying to run away from taxes
  Nobody wants to pay more taxes than they need to. But this is a strange time of year in a strange year. The tax code is in flux, and what should you do between now and the end of the year to improve your tax situation? The conventional wisdom is that taxes aren’t going to go up for businesses next year. They might go down, or they might be the same, but they’re not going up. So, what should you do to take advantage of whatever changes might happen? The secret sauce is to reduce or defer your taxes
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mapping your inventory control
  Every company has some large assets that are critical to the strength and operation of the company. The values assigned to them are shown on the balance sheet. Accounts Receivable, Prepaid Assets, Fixed Assets, Inventory. What steps do you need to take to make sure that these critical numbers are accurate? For inventory, the issues are pretty clear. How much inventory do you have? How much do you have in stock? Knowing the answer affects whether you can do business. Your ability to accept orders, deliver to customers or build finished goods depends on it. What’s the value? The
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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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