Category: Business Best Practices

Why Paying Taxes is Good

It’s the time of year when everyone is worried about how much they will owe the IRS. No one wants to pay taxes. As a entrepreneur or business owner, you want to keep as much money as possible.  You may have told your CPA or tax adviser to make sure you pay as little tax… Read more »

The Key to KPI’s

 The Key to KPI’s – Key Performance Indicators (KPIs) are standards used to measure business performance.  As a business owner it is important to understand how you rank compared to your competitors.  Financial institutions, stakeholders, and prospective buyers use KPIs to analyze credit worthiness, business health, and business worth.  KPIs are a great way to… Read more »

Productivity and Sales Per Employee

Productivity in the Work Place – Everybody talks about it, but how do you measure it?  One of the key measures for employee productivity is sales per employee.  This key performance indicator is used to measure the efficient use of resources, your employees.  The higher your sales per employee number the more efficient your work force.… Read more »

How Much Inventory Do I Need?

Inventory is one of the biggest investments you will make in your business.  Your inventory turnover ratio tracks the number of times or cycles new inventory hits your shelves each year.  In addition, it measures the liquidity of your product and your ability to effectively manage your stock.  You can calculate your turnover ratio as… Read more »

Turning Business Risk into an Opportunity

Business inherently has risk.  Successful business owners embrace risk creating their own opportunity.  They began their business embracing the question: “What if…?” There are two characteristics to every risk; consequence and likelihood.  Consequences can range from mild to catastrophic, the insurance industry labels this as severity.  Likelihood can range from rare to very often, this… Read more »

Escaping the Danger Zone!

Most business owners don’t ask, “What is my business?”  They know why they started their business and what they want to accomplish. Often they miss the core of “being in business”. The Danger Zone is the end result of an owner not paying attention to their business. Every company requires a robust infrastructure.  Infrastructure includes… Read more »

How Can I Get Paid Faster – Part One

What is Accounts Receivable Turnover? – As a business owner, you know that cash is the life blood of your business. Accounts receivable turnover is the measurement of how quickly you are paid by your customers. Now you might be thinking, “How do I get paid faster?” Or “How do I improve my accounts receivables… Read more »

Managing Cash Flow Complexities – Part 5: Cash vs EBITDA

At a recent risk management seminar, one of the participants spoke about how their controller received an email from the CEO of their company asking him to wire transfer some funds for that day.  What the controller didn’t know is that someone had hacked into the company’s email system, and had been monitoring the style and timing of the… Read more »