Small Business Advice

Business is clearly more than just “show me the money.” But certainly, money is critical. As Henry Ford stated, “Business must run at a profit, or else it will die.” And John Mackey, co-founder of Whole Foods added, “Just as people cannot live without eating, so a business cannot live without profits.” So, how does a small business survive? It requires a continuing revenue stream, positive cash flow, and profits.  Revenue and Income  Sometimes the terms “revenue” and “income” are…

Businesses used to be very pet averse. But that changed gradually as “new age” companies like Google and Amazon embraced the “pet culture” that Millennials wanted. Since the COVID-19 pandemic when many workers enjoyed working at home with their pets, many companies now have office pet policies. Consider this short list as an example: Ben & Jerry’s, Bissell, Clif Bar, Build-A-Bear Workshop, Etsy, Glassdoor, Kabbage, and Kimpton Hotels. This makes sense, in part, because about 70 percent of the U.S. population…

Every small business owner likely hopes for plenty of “smooth sailing” for his/her business. But the reality is that virtually all businesses experience problems and unexpected challenges from time to time. Compounding these is the reality that most businesses will experience some type of seasonality that may put pressure on staffing, inventory, and finances. For all businesses that have seasonal swings, the key is to prepare your business to help you achieve your desired results. This included preparing your business for…

Noted financial and business expert Warren Buffet, has said that “accounting is the language of business” and businesspeople must know how to read and interpret financial statements. The clear consensus among accounting experts is that business owners should review your business’s financial condition each month. Among other institutions, Princeton University requires “regular, at least monthly” reviews for its organizations.  Why You Should Review Your Business’s Financial Condition Monthly  Clearly, to have an accurate bearing on a business’s financial condition, financial reports must be kept…

A business owner may ask, “Which is more important, profits or growth?” Clearly, both are critical. Still, noted author and management consultant Peter Drucker said pointedly, “Profitability is the sovereign criterion of the enterprise.” And Hendrith Vanlon Smith, Jr., CEO of Mayflower-Plymouth added, “If a business is not profitable, It’s worthless.”  While profits don’t necessarily guarantee growth, no business can succeed in the long run if the business is stagnant.   Why Profitability is Important  Continuing to earn a profit is important because it means that…

The word “risks” can strike fear into the hearts of anyone, especially small business owners who have a lot on the line in their small business enterprise. But in business, as in life, taking prudent risks can be beneficial, even energizing. The reality, as many business leaders have offered, is that taking risks is a key, even inescapable part of business. There are indeed various risks including financial risks for small businesses. Importantly, as Mark Zuckerberg has stated, “The biggest risk…

Every business is created not merely to exist but to reach some goals that are established by its owners. Those goals can include survival for a newly established business or during a time of crisis, growing sales, growing market share, and growing profits. All these take planning, skill, and effort but as American economist, Benjamin Graham stated, “The worth of a business is measured not by what has been put into it, but by what can be taken out of it.”…

According to SCORE, about 75 percent of small business owners participate in charitable giving. They reportedly donate about 6 percent of their profits each year to charities. They contribute in support of youth organizations, donate to first responders, support local service organizations like the Rotary, for example, and they donate food and service time to places like soup kitchens and food banks. Clearly, charitable giving is valuable, but it must be approached wisely.  The Benefits of Charitable Giving  The benefits of charitable giving include:  First,…

Every small business owner must focus on their business dreams, goals, and the essential struggle to secure an average small business profit. As Jason Fried, Founder and CEO of Basecamp stated, “A business without a path to profit isn’t a business, it’s a hobby.” And speaking even more bluntly, Hendrith Vanlon Smith, Jr., CEO of Mayflower-Plymouth said, “In business, profitability is a non-negotiable. If a business isn’t profitable, it’s worthless.”   Why is A Small Business Profit So Important?  Earning a profit is vital because profitability…

A new year is upon us. As any good football, basketball, or soccer coach would advise, “start strong.” So, prepare your small business for success in another year by starting strong.    Why Start Strong?  By starting strong, you get a surge of momentum that helps you not fall behind on your goals as the year progresses. Starting strong can help employees be more motivated and energized. A strong beginning means refreshing goals, recharging, or even redirecting the organization. It…