Most Popular Blog Posts of 2010
There is a lot of talk and content on the internet about "bootstrapping." I had an interesting experience with this just last week. A company is looking to roll-out an innovative business model in a very competitive online business space. One partner in the business wants to grow slowly, gaining customers slowly and using the revenue generated to fund future growth.
Sports teams compete against each other and they keep track of the score. They know who wins and who loses, and each player on the team has more statistics on their performance than they know what to do with. Individual sports athletes, like golfers and runners, meticulously measure their performance against themselves and others and use their numbers to find ways to improve.
Is running a business any different? Is there a way to know if you win or lose each day? Each week? Each month? Each year? The answer to all of these questions is yes, and I write about how to accomplish this in
Over $200 billion dollars will be spent purchasing goods and services online in 2008, according to the brief above from the April 8th, 2008 USA TODAY. The Internet is becoming the major medium for marketing, advertising, and purchasing. This is a powerful revelation for emerging and medium-sized business owners - it levels the playing field with the big guys and allows for tremendous niche and overall market segmentation strategies.
Business is about cash flow. Whoever coined the phrase “Cash is King,” must have been in business. But an entrepreneur’s bank account can sometimes be the most misleading source of information about how the business is really doing.
THE CASH VS.PROFIT DILEMMA
Your profit and your cash will almost never equal each other in the same period. This is one
Is your cash tied up in accounts receivable? If you collected your receivables would you be able to make payroll and buy the inventory you need? For financial help for small business there are some important considerations for cleaning up your old receivables and making sure you collect your receivables before they get old.
First, we need to understand how long it is taking you to collect. The most commonly used ratio to determine this is Days Sales Outstanding (DSO). The calculation is no
Entrepreneurs and business owners often ask and wrestle with this question. We need to consider your replacement income, your monthly "nut," and your entity's tax strucutre to begin to answer the question.
The first factor to consider is the cost to replace your position in the company. It is very important to not confuse business ownership with business employment. If you are the President and CEO of the company, then what are Presidents and CEOs of other companies like yours earning as a salary/wage every year. Again, please separate ownership from wage.