Profit is not an accident
Cash flow is one of the biggest concerns of all business owners, large or small. Unexpected changes, low profits, late payment of customers and other factors can cause major cash flow problems for many. Small business owners are likely to be hit hardest. When cash flow troubles come, they may not have enough cash reserves to tap into and keep …
“How did I make that much profit? I don’t have that much money in the bank.” It’s not uncommon for business owners to ask this question. But there’s a logical explanation behind it and the answer can be found in the balance sheet. It’s called ‘a statement of financial position’ for a reason. By looking at this key financial report, …
A successful sale happens when a buyer and a seller agree to the terms of the offer. When crafting an offer, majority of small business owners make one of these two common mistakes: They offer their goods or services at very low prices. They make a sales offer that does not encourage future negotiation. There’s a third extremely effective sales …
One of the most common metrics many small business owners measure is turnover. They gauge the success of their business based on the growth in turnover from year to year. When a peer asks how business is going, we boast that turnover has increased by X percent, or the dollar value of the turnover being reported. However, measuring revenue as …
You’ve heard the saying “cash is king”, and as a business owner you can attest to that from your own experience running a company. Receiving payment for a sale of your products and services is not difficult. The real problem is when. If only you can collect payments instantly after you have made the sale, you would worry less about …
Those of us with kids, or who are often surrounded by children, can nod knowingly at this all-too-common conversation: Child: Can I invite some friends over? Me: What friends? You don’t have those. Of course, I was just jesting at the last part. Kidding aside, if you have spent a considerable amount of time around small children, you have seen …
Albert Einstein defined insanity as the act of doing the same thing over and over again and expecting different results. Sanity is the opposite of that – it means changing how you used to do something (because it’s not producing the result you want) so you can hope for a favourable (or better) outcome. This act oddly scares people because …
It’s funny how when I ask business owners where they are going on holiday, their response is so certain. Their vacation is all planned out, day by day. They have usually decided which sights and attractions they will visit; how many days they are staying in each location; even the time of their flights. You probably do the same when …
In making an idea work or in running a small business, age matters little. You’ve probably heard of successful teenpreneurs and kidpreneurs making serious amount of money from their own small businesses. It’s no secret that smart, enthusiastic, and business-minded kids do exist. Remember your classmate back in grade school who made a profit with his lemon stand business? His …
At the beginning of the year, our team sat down together to discuss our goals and plans for the next 12 months. This included systems and plans that we want to implement this year to improve efficiencies and consistencies in how we do things. One of the suggestions put forward by my team was to create a “Mel contingency plan.” …
Here’s a true story involving a broken glass door, a tradesman, and two disappointed customers. Recently, an unfortunate incident happened at home. Our glass sliding door broke, an apparent safety and security hazard which required immediate attention. We called up a glass company at once. One promptly answered and gave us the option of having the door fixed the same …
Many entrepreneurs are so eager to do business they agree to all opportunities. This is usually the case for every small business owner trying to win customers to survive. You’ve probably heard the saying: “say yes, and figure out how to do it later.” While this may be true in some cases, it gets a bit tricky when the customer’s …
