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
View More
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
View More
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
View More
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
View More
illustration of businesswoman in a fireman's hat., with words 'My job is to put out fires'.
“We can’t print packing slips, but let’s not worry about that now, just get that skid into the truck!” Business owners are constantly putting out fires. They know the underlying issues, and understand that they haven’t resolved them for a variety of reasons. Do any of these sound familiar? There’s no money to throw at the problem. We don’t have the knowledgeable staff to resolve the issue. It’ll take too much time to fix it. We need to keep the business moving. OK, I really don’t know HOW to resolve it. Just keep working.   So, here’s the question. Are
View More
photo of profit concept using icons, arrows, color.
Of course, you know the answer! You buy raw materials, you pay your staff, rent and utilities and you sell what you make. But if you’re only looking at those few numbers, you are not able to make the changes you need to make your business more profitable. Your income statement is the summary, the outline of how your company performs. But if you’re not digging deeper, you’re missing things that will dramatically change your bottom line. It is the subsidiary reports that really tell the story. Here are 5 things that you should be looking at that will make
View More
photo of man lying on top of money stack
It doesn’t make any difference what you think, a sale isn’t a sale until you collect the cash.   So, how do you make sure that you complete that sale?  Here are 6 critical steps to follow: Establish a Credit Policy – How do you know that they are able to pay you when your invoice is due? How large an order will you let them place? How soon will you expect payment? Get credit references, and don’t set a new standard. Proper invoicing – If the invoice isn’t correct, the payment will be delayed. Invoice the day you ship or
View More
photo of payroll check stub
As a small business owner, there are some things that you know you’re expert at. Sometimes you do things because you want greater control. Sometimes it’s because you want to save money. When it comes to planning for and doing payroll, what should you do? What are the options available, and what are the pros and cons of each? 1) Totally DIY (Do It Yourself), get the tax tables and do the calculations, print the checks and do the reporting yourself. 2) Buy or subscribe to Payroll Software that does some of the work for you. 3) Use a Payroll
View More
photo of puzzle with one piece inventory management
As a business owner, any improvements you make in Cash Flow Management are going to be based on three factors – Accounts Receivable, Accounts Payable or Inventory. Family owned small businesses are more affected by changes in cash flow than larger organizations, because of a smaller cash cushion. Cash Flow Forecasting done by an in-house CFO or CFO for hire will take into account these factors. What are the ways that you can better manage your Inventory to improve Cash Flow? If you sell or make products, inventory is a major asset and use of cash for your company. Here
View More
photo of how financial statements work
Often, I meet with business owners that are embarrassed that they don’t understand the basics of Finance. If you don’t understand the differences between the financial statements you’re given, how can you use that information to help grow your business? So, here’s a little refresher course on the three Financial Statements, Balance Sheet, Income Statement and Statement of Cash Flows. They each tell you different things about your business. The Balance Sheet tells you the status of your business at a point in time. The Income Statement tells you how your business did over a period of time. The Statement
View More