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Will You Add? - Financial Fundamentals - What Every Small Business Owner Should Know!
Have you ever considered how smaller businesses and even franchisees who own franchised outlets are hurt in economic downturns? Have you ever considered the ebb and flow of regulations and how they try to control it? We all know that the government does nothing very well and yet we allow them to try to reign in the cattle and corral the raging rapids of our economy. Why?One thing I find interesting is that when the economy goes down it is always the small businesses that pull out the consumer from their demise due to scarcity of currency flows. When the economy is good they regulate the crap out of the small businesses
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of G
An operating agreement is required for all LLCs setup in California. When you form your California LLC spend time to make sure that your operating agreement is complete and provides an adequate roadmap for your company and its members.In California an LLC is filed with the secretary of state. The operating agreement however, is not filed with the Secretary of States Office. It is a document that is maintained by the LLC to provide a roadmap to the members of the LLC. It will detail how the members and managers should operate within specific situations.Having an operating agreement is required in Californi
There are a variety of key aspects of your financial picture that you need to be aware of and they can be outlined based upon the three critical financial statements: Profit/Loss, Cash Flow, and Balance Sheet.
I meet with entrepreneurs every day that are unsure of their profitability. They “think” they are making money because they have money in their checking account. This is NOT how you should be running your business. Having money in your checking account doesn’t mean you are profitable. It could mean you haven’t paid all the bills so you have a little cash. Cash and profit are two different concepts. If you aren’t profitable, you won’t have longevity in your business.
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of Go
Your network is growing. You know lots of different business people and you are getting to know what they can deliver. And, of course, they are getting to know you and what you offer.But does everyone know EVERYTHING about you? And do you know ALL there is to know about your contacts?You need to know all this if you are going to seize every opportunity to build even stronger business relationships…Create Your Referral MatrixThe simplest way to keep an eye on what is developing is to create a Referral Matrix. The concept is very simple. The Referral Matrix gives you an '
There are a variety of key aspects of your financial picture that you need to be aware of and they can be outlined based upon the three critical financial statements: Profit/Loss, Cash Flow, and Balance Sheet.
I meet with entrepreneurs every day that are unsure of their profitability. They “think” they are making money because they have money in their checking account. This is NOT how you should be running your business. Having money in your checking account doesn’t mean you are profitable. It could mean you haven’t paid all the bills so you have a little cash. Cash and profit are two different concepts. If you aren’t profitable, you won’t have longevity in your business.
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of G
Brand identity is the combined effect of visual elements in your marketing materials. A basic brand identity kit consists of a logo, business card, letterhead, and branded envelope. This basic set of materials can be extended to include a website, brochure, folder, flyer, or any other professionally designed pieces.A successful brand identity is built around the following 9 key characteristics:• Unique in "look and feel" and message about your business. Make sure that your business's graphics stand out from and cannot be confused with those of the competition, and that the ways you talk and write about your bus
There are a variety of key aspects of your financial picture that you need to be aware of and they can be outlined based upon the three critical financial statements: Profit/Loss, Cash Flow, and Balance Sheet.
I meet with entrepreneurs every day that are unsure of their profitability. They “think” they are making money because they have money in their checking account. This is NOT how you should be running your business. Having money in your checking account doesn’t mean you are profitable. It could mean you haven’t paid all the bills so you have a little cash. Cash and profit are two different concepts. If you aren’t profitable, you won’t have longevity in your business.
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of G
Most industrial plants in need of oil analysis services might begin their search on the web. While this is a common and effective place to begin the evaluation process, it definitely will not tell the whole story. Knowing the right questions to ask after the initial search is completed is crucial in uncovering a superior provider from an average oil analysis provider.While the discerning potential customer may ask questions regarding testing capabilities, process and protocol, and price there are other questions whose answers may mean the difference between a seamless interaction and a laborious one. It is these quest
I meet with entrepreneurs every day that are unsure of their profitability. They “think” they are making money because they have money in their checking account. This is NOT how you should be running your business. Having money in your checking account doesn’t mean you are profitable. It could mean you haven’t paid all the bills so you have a little cash. Cash and profit are two different concepts. If you aren’t profitable, you won’t have longevity in your business.
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of G
Yes, I believe that networking works.Yes, I can give you examples of how networking helped boost my career and my business.No, networking is not a quick fix.Yes, networking can be frustrating – even when you are doing the right things. It’s more frustrating when you are doing the wrong things, and even more frustrating when you are not sure if you are doing the right things.What are the most common mistakes in networking?The myth is in thinking that networking is an event.The reality is that networking is a process.Perhaps you have attended a networking event and witnessed “Mr.
So what is the difference between profit and cash? Profits are determined through an equation of Revenues – Cost of Goods Sold = Gross Profit – Overhead Expenses = Net Profit. This equation is the makeup of your Profit/Loss Statement. Revenues are dollars from generating sales within your business. Cost of Goods Sold reflects the direct costs for labor and materials incurred in your business. Overhead Expenses are all those other costs that you incur so that your business can function (i.e. Rent, Taxes, Insurance, Marketing, Accounting, etc.)
You can have activities that affect cash but are not considered revenues or expenses. For example, when you borrow money from a lender, it is not considered income. It is classified as an increase in your liabilities (i.e. debt). When you repay that loan, it will not be considered an expense. It is a reduction in your liability. Any interest you might incur on that loan would be classified as interest expense, but the principal portion is not. Similar concept applies for owner investments and withdrawals.
Often times the two concepts of cash and profit are not clearly defined for small business owners; therefore, you don’t have a good handle on your finances and how to interpret any outcomes from financial reporting. You can show a profit and have a negative cash flow if your loan payments, owner withdrawals, and other non-expense activities are taking more cash out of your business than you have profit. Same goes for the opposite flow, you can have a lot of cash coming into the business through an increase in personal or lender-financed activities vs. revenues. The most basic of cash flow statement information can be outlined as Beginning Cash Balance + Cash Inflows – Cash Outflows = Ending Cash Balance. It’s important for you to understand the concept of your Profit/Loss Statement and your Cash Flow Statement. They provide two different views of our business.
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