Cash flow is simply the flow of funds into and out of a company. The cash flow statement is the essential summary of the cash coming into a business including sales, collecting accounts receivable, investments, and loans. And it reflects the funds going out of a business including accounts payable, operating expenses, payroll, sales and marketing expenses, and loan repayments. Cash is a current thing, not a yesterday thing, and not a tomorrow thing. As American businessman and author Robert…
We’ve all heard the old quotes about time like “Time waits for no one,” and “There is no time like the present.” It is true that time matters a lot. And in business, the time taken to plan and prepare in advance is critical to achieving success. It is amazing to think that the autumn season is already upon us and that means that it is indeed time to make important financial preparations as the end of the year approaches….
Hiring just anybody is easy. Simply see if they can “fog a mirror.” Yet, hiring the right person, especially the first hire for a small business, may not be easy but it is crucial. It is crucial because a business owner should want the hire to fit, to contribute, and to stay contributing. As Lawrence Bossidy, author and former COO of General Electric said, “I am convinced that nothing we do is more important than hiring and developing people. At…
The primary purpose of every business is to make money; to generate a profit. If there is no return on effort and on a business’s investments, the business will surely die. There are clearly two major ways to generate profits: increase revenue and decrease cost. A key solution to control and reduce business cost is outsourcing, a widely embraced practice where a business hires a party outside the company to perform services that could otherwise be performed inside the company….
There is an old saying that “Knowledge is power.” That is certainly the case for every business. No smart business owner should ever guess what his/her cash balance is or take a rough “shot” at last month’s income or operating expenses. No! A key to success in business is careful preparation and wise use of quarterly reports, a summation of the financial statements. As Warren Buffet stated, “You have to understand accounting and you have to understand the nuances of accounting….how…
There are many critical responsibilities on the shoulders of every business executive. Perhaps paramount is the responsibility, as author James C. Collins said, “Get the right people on the bus and in the right seat.” The corollary to that is anonymously stated as “When you find good people, keep them close.” Preventing unwanted employee turnover is essential to keeping good people. Finding and retaining the best possible employees is critical to today’s business success. Why Do Employees Leave? Probably…
The original PPP program gave businesses 2.5 months of payroll as a loan which would be forgiven if you spent the money on payroll and other allowable costs over the 8 week period after you got the loan. Yesterday (June 4) congress finalized and passed HR 7010 which changes the PPP program retroactive to the original law date. Here are some key changes and how they will affect your business: The business now has 24 weeks to spend the money…
Recession. Even though it is a dreaded word, economists have been predicting one since mid-2018, and now with all the socioeconomic impacts of the COVID-19 virus, a recession is on our doorstep. This one is not the first and probably won’t be the last. The U.S. has lived through the 2002 economic aftereffects of the 9/11 “Attack on America” and the 2007 housing bust which lead to the financial crisis of 2008-2009. In the face of today’s crisis, the best…
A startup is a new company founded by entrepreneurs based on a vision for success in developing a unique service or product and bringing it to the marketplace. Many of today’s most successful businesses began as startups including McDonald’s, Ford Motor Company, and Microsoft. Each of these founders had a vision for success. As Tony Hsieh, Zappos CEO said, “Chase the vision, not the money; the money will end up following you.” Successful startup plans start with a clear vision….
THE GOVERNMENT ACTUALLY PUT OUT A SIMPLE PROGRAM: This program started with a simple idea and hopefully, the final guidance on the forgiveness will be as simple. The original program allowed businesses to borrow 10 weeks of gross wages plus state unemployment cost, related employee health insurance, and retirement contributions for those 10 weeks of wages. The goal was simple, give employers the money to keep their trained workforce on payroll so when the economy opened up the workforce…
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