No business sets out to break even or lose money, but one that operates without the knowledge of the sales volume required to cover cash flow requirements can run into trouble. While Pointguard recommends accrual basis accounting to evaluate profitability, you will need to know a few other items to ensure you have enough cash…
Business owners require a net return on their investment to motivate them to continue to invest. While there are several measurements used in evaluating performance, Pointguard relies on two primary measurements of return. Return on Sales (Net Income) This measurement evaluates the financial return on every dollar of sales revenue earned during the period after…
Starting a new year is stimulating for business owners and managers because you wipe the slate clean and start over. Whatever the struggles were in the prior year, you have learned from them. A new year provides an opportunity to make required changes to maximize performance. If you sell services to your customers, you have…
December might be the most important month of the year. Amidst all of the priorities you juggle during the year, employee performance reviews and goal setting may be the most critical to your business success. December is a perfect time for this as you end the current year with reflections on the past, and look…
Making decisions in the heat of battle is the most difficult position for a leader, yet great leaders are able to evaluate and courageously commit in spite of the challenge. As I work with business owners and leaders, I find that they struggle most with the timeliness of key decisions. There are many reasons for…
The purchase of a business is likely the most significant financial commitment a person will make in their lifetime, next to their home. The first thing a buyer must do is acknowledge that the purchase you are considering is an investment, so remain objective and keep your emotions out of it. Every buyer experiences strong…
The bedrock of a healthy society is truth. Truth brings believability by conforming to the facts of a situation rather than opinion. Where there is no truth, there is chaos. Everyone is doing what is right in their own eyes, which leads to destruction. In my own experience, instances where the truth has been scuttled…
Leadership is a privilege earned through adversity, commitment, and trust. Observations of those in leadership positions often reveal their trustworthiness. Leaders are often under the microscope, and rightly so. Effective leaders are followed and supported, even in tough decisions where it may have a negative impact on the group. The reason we follow an effective…
Leadership is a privilege earned by those who exhibit extraordinary skills and choose to be an example to others. While leaders can have both positive and negative influence, the checks and balances of life often remove bad leaders from their position. Great leaders in my life have had the attributes of competence and passion, which…
Effective business leaders make things happen. One of the attributes they possess is creativity, which is often seen in their ability to solve problems. Most of the time creativity is thought of as making something out of nothing. My observation is that the most common creativity emerges from identifying a problem, and assembling solutions from…