Guide your small business to success with a simple small business key performance indicator (KPI) worksheet template for Excel or Google Sheets You don’t need to use a KPI dashboard to run your business. You don’t need to drive your car with a speedometer or a gas gauge. And you don’t need your mobile phone […]
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What are your working capital formulas telling you?
The working capital formula and working capital ratio formulas are popular and easy ways to estimate your future cash flows. Lenders use it to judge your financial health. Do you know how much net working capital you have? Is your net working capital ratio at a healthy level? How can you improve your working capital […]
How Does Value Creation Lead to Business Success?
Business success comes from value creation for owners, customers, and employees. Value is being built or destroyed throughout your business. What’s the purpose of your business? Some would define it as profitability, cash flow, security, or freedom. The purpose of a business is to serve the values of you as the owner. Its purpose is […]
Free Your Cash Trapped in the Cash Conversion Cycle
Your business is a constant cycle of cash being invested and then received back, hopefully with a profit. This cycle is called the cash conversion cycle. Knowing how it works allows you to have less cash lost to the cycle. Most importantly, you’ll have cash available when you need it. The cash conversion cycle of […]
Do You Truly Realize the Difference of Profit vs Cash Flow?
Many Small Business Owners Don’t Appreciate the Differences Between Cash Flow and Profit. Those Who Understand the Difference of Profit vs Cash Flow Get Both.
How to Create a Cash Flow Projection
A cash flow projection is the most important financial report for your business yet so many businesses miss out on its benefits. How important is cash flow? Richard Branson said, “Never take your eyes off the cash flow because it’s the lifeblood of business.” A study by QuickBooks revealed shocking statistics about cash flow issues […]
Measure More Value with the Triple Bottom Line
The triple bottom line broadens your view of your company’s impact. Many businesses focus on one thing – profitability (a.k.a. “the bottom line”). Recently, both business owners and customers are realizing that a single bottom line misses a lot of what they value. Some are now looking at a “triple bottom line.” While profit is […]
The Advantages and Disadvantages of Sole Proprietorship
Knowing the advantages and disadvantages of sole proprietorship helps you decide if it’s right for your company. When you start a business, the type of entity you select to form your business affects compensation, taxation, liability, accountability, and dissolution or bankruptcy. This article will outline sole proprietorship advantages and disadvantages. It comes from the office […]
Two Massive Business Trends You Can’t Ignore in 2021
Two massive business trends will accelerate in 2021. Are you ready for them? Will each trend be your friend – or the end? COVID’s impact on business is often described as a temporary challenge to endure. That’s wrong. The impact on business is permanent. It’s also the start of a massive surge of business innovation. […]
The Benefits of Filing Chapter 11 Bankruptcy as a Small Business Debtor
You may have heard that the Chapter 11 process is somewhat streamlined for small businesses, and this is true. A “small business debtor” is a person or entity who: (1) is engaged in business or other commercial activities; and (2) owes no more than $2,725,625 in total claims as of April 1, 2019, excluding obligations […]
4 Product Pricing Strategies and Mistakes to Avoid
These new product pricing strategies build lasting customer loyalty and value. Both current and future pricing are part of the definition of a good product pricing strategy. You’ve put in the hard work to build your new product. It’s finally ready for sale. You have one critical decision left. What is your pricing strategy? You […]
4 Proven Ways to Prioritize Your Goals and Tasks
Use these four methods to prioritize goals and tasks to focus on what’s important. You have lots of ideas. It’s time for action. It’s time to pick one thing and get it done. What’s most important? I’ll show you some practical ways you can prioritize goals and tasks. Carefully choosing what to do next is […]
Excess Capacity: Hidden Profits from Untapped Revenue
Big opportunities are waiting to be found in your excess capacity. Capture additional revenue with few additional costs. New profits lie hidden unless you know where to look. What machines are quietly idle while others are a flurry of productive activity? Has an employee said they are “ready for a new challenge” or “not being […]
Easily Test Your Pricing Strategies for Maximum Profit
A quick price analysis will significantly increase the profitability of your pricing strategies. Every business owner wants to find pricing strategies that maximize their profits. Once you know the prices of your competitors, do you know how to set your price to maximize your profit? Let me show you how to estimate how your price […]
How to Use Marginal Profitability Analysis for Better Decisions
Don’t Use Historical Profitability Analysis for Forward-Looking Decisions You’ve heard for years that you needed to perform product profitability analysis to know which of your products made or lost money. Maybe you finally calculated the profitability of each of your products. Congrats! That’s a good start. Just don’t use them to decide what you should […]
Avoid These Business Decision-Making Errors That Can Sabotage You
We like to think our business decision-making process is completely rational. Unfortunately, that’s a delusion. We are prone to thinking errors that are very irrational. How many times have you done the following? Didn’t give up on a losing product or project because you had already invested so much into it you thought you couldn’t […]
Are You Caught in the Business Growth Trap?
Before assuming business growth is the answer, a little research can save you from working hard for no additional profitability. A beaver trap uses the beaver’s instincts to kill it. When a beaver senses danger, its instinct is to go to deeper water. The trap scares the beaver when it latches on. Deeper water is […]
Business Goals Move You From Distraction to Direction
Define your Primary Aim, Life Aspirations, and Authentic Goals to Focus your Business Does a lack of clear business goals cause you to work for the needs of your business instead of the business working to serve your needs? Niche Retail was a company that many would consider a fast-growing successful company. Gino Wickman, in […]
Key Performance Indicators Guide Your Company to Success
You don’t need another number. You already have more numbers than you know what to do with. There is so much information coming to you from your business that the key performance indicators that matter most get drowned out in the noise of numbers. A client showed me their business’s dashboard. I kept scrolling down […]
12 Cash Flow Management Tips (And One Essential Tool)
I think you’ll agree that fluctuating cash flows are a massive source of stress for a small business owner. One day you’re riding high on piles of cash then suddenly your holding on with white knuckles as your cash flow plunges. It’s time to get off this wild ride by finding ways to increase your […]