Category Archives: Business

• Putting On The Shareholder Hat

  Posted on 09/27/2017 in Business, Finance, Success

  As the owner of a business, it is inevitable that you will wear many different hats.  You will be the company decision maker, shareholder, HR manager, manager, technician, bookkeeper, business strategist, etc.  Too often the role of shareholder gets too little attention.  I am going to make the argument that is is one of the most important roles for you to give attention. Why does the role of shareholder get left behind?  Because the owner of the business is too busy wearing the other hats in their business.  In the day to day operations there are always more urgent items that are calling for your attention.  There is a breakdown in the workflow processes.  Payroll needs to be made.  An important customer needs something to be corrected.  Employees need training on how to improve their work.  There are always urgent items on the table.   Because the items are urgent they tend to be like a squeaky wheel shouting at us.  I need you to take care of me now. Urgent does not mean it is important.   There will always be more things to do each day than there is time to complete them.  The key to growth and success is…

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• Sink Your Teeth Into This One

  Posted on 09/20/2017 in Business, Taxes

  “You better cut the pizza in four pieces because I’m not hungry enough to eat six.” Yogi Berra The calendar is full of little-known commemorations that probably escape your attention, and this month is no exception. Some of them are just silly, like September 19’s International Talk Like a Pirate Day. (Although, really, if you don’t think pirates are cool, what’s wrong with you?) Some are obscure, like September 23’s Restless Leg Awareness Day. But some of those special days resonate with everyone. And that brings us to September 20: Pepperoni Pizza Day. Yes, it’s really a thing, and yes, it’s magnifico! Just about everyone loves pepperoni pizza. Even vegans can enjoy it with dairy-free cheese and meatless pepperoni substitutes. (Don’t mock it until you’ve tried it!) Americans eat over 100 acres of pizza per day, and 36% of those pies have pepperoni on top. We eat over 250 million pounds of pepperoni on our pizza every year. Naturally, tax collectors love it . . . so let’s see how they take their slice or two of the pie. Pizza is a $44 billion industry here in the U.S. The top 50 chains, led by Pizza Hut, Domino’s, Little Caesars, and Papa John’s,…

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• What’s Keeping You From Succeeding?

  Posted on 09/07/2017 in Business, Goals, Success

  In my business, I have business growth goals.  I have a number of services that I perform as follows: Strategic Planning and Execution Strategic Tax Planning Tax Preparation Accounting Payroll This summer I made the decision that I would only work on growing the Strategic Planning and Execution and Strategic Tax Planning service lines.  These are the two areas of service that I excel at and that are the most valuable to my clients. Once I decided that I would focus on Strategic Planning and Execution and Strategic Tax Planning, I also made the decision that I was going to limit the growth of  Tax Preparation, Accounting and Payroll.  The reason why I decided to limit the growth on Tax Preparation, Accounting and Payroll is because I want to focus my energies and resources on the service lines that I deem to be the best growth areas of my business. One of the fundamental principles of economics is that we have limited resources.  We have limited finances.  We have limited time.  I still have yet to meet one person who has more than 168 hours a week.  Because I have limited resources, I have to prioritize the use of those…

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• Opportunities They Are a Knocking

  Posted on 09/06/2017 in Business

  I’m going to place two bills on the ground.  One bill has George Washington on the face.  It is a One Dollar Bill.  The other bill has Benjamin Franklin on the face.  It is a One Hundred Dollar Bill.  Which bill are you going to pick up?  Are you going to pick up the One Dollar Bill or are you going to pick up the One Hundred Dollar Bill? That’s an easy question, I’m going to pick up the One Hundred Dollar Bill.  That seems like the logical choice.  It is worth more.  It will allow me to get more of the things I want with it.  If I pick the One Dollar Bill, I could buy a candy bar.  However, if I pick the One Hundred Dollar Bill, I could have a nice dinner with a friend at a fancy restaurant. It’s easy to see when we put things in monetary terms that some choice are really simple.  If I choose the One Hundred Dollar Bill, I will be better off than if I chose the One Dollar Bill. Many people say they want the One Hundred Dollar Bill, however their actions betray their intentions.  When it comes time…

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• The 10% Solutions

  Posted on 07/20/2017 in Business, Finance

  In my previous post, I talked about how Cash is King.  I ended the post by discussing the topic of building a cash reserve. I’ve heard people say that I can’t afford to build up cash reserves.  My reply is you can’t afford to not build up a cash reserve.  If you don’t build up a cash reserve it is just a matter of time before you run into an emergency and you need to purchase equipment, inventory, etc. so that your business can operate according to your plans. If you think you can’t afford to build up cash reserves, then it probably means one of two things: The business is not generating enough sales. The business is spending too much money. I don’t think anyone should wait to save money.  If you put of saving money now, you will continue to put off saving money until you need the money.  The only way to save money is to save money. There are two important aspects of saving money: Start now Have a separate bank. Start now.  Maybe you start with $1 a day.  Maybe $100 a day. Maybe $100 a week.  Start now so that you can establish a…

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• Cash Cushion

  Posted on 07/19/2017 in Business, Planning

  There is an old saying that Cash is King.  I remember watching a movie once where one of characters said I believe in the Golden Rule – He who has the Gold Rules. Cash for a business is like oxygen for us humans.  Without cash a business will start to suffocate and soon die.  In order to keep a business alive cash should be constantly coming in so the business can breathe.  A business cannot be healthy without a steady stream of cash. Most businesses experience some seasonality in they income and expenses.  Realtors will tend to be more busy during the summer months when there are more people buying and selling their homes.  Retail businesses may be busier in November and December when people are buying gifts for Christmas. Let’s look at a retail business as an example.  The business needs to increase its inventory at the end of October so that it can benefit from increased customer demand during the November and December busy season.  In order to purchase the extra inventory, the business has to two options: Purchase inventory with existing cash Borrow the money Borrowing has the benefit of enabling one to get the funds so…

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