Most Popular Blog Posts of 2010
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
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
Top-line sales are much less important than gross profit - so pay your sales staff accordingly. Most businesses struggle with how to structure the compensation for sales reps. We don't want it to be so complicated that no one can understand it. But we also need it to incent the behaviors that will most help the business achieve its objectives.
I was shocked to read a recent article in the USA TODAY titled: Rush to Earn Nothing
The 4-week US Treasury Bills recorded their lowest auction rate in history at 0%. Investors were willing to let the US Government borrow their money for four weeks for no return. There are several implications of this: We have to think this through logically. Investors make their investment decisions based on their risk vs. return criteria.