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Category: Business financial help

What To Do With Your Small Business Profits?

A healthy business should have a healthy relationship with its banker. But how healthy does your business need to be? Bankers have specific ratios and assessments they use to determine a business’s credit worthiness. It is worthwhile to educate yourself on how bankers determine these ratios for your specific industry and business. Once you ... Continue reading

Understanding the Canadian – US Exchange Rate & 2 Money Saving Tips

First let’s make sure you understand how the rates are calculated by the banks. The percentage used to calculate the exchange is not the same as the difference between the two currencies. For example: If 1.00 dollars Canadian equals .80 dollars US, you might assume the percentage to calculate exchange is .20 or 20%. It’s not. If you ar... Continue reading

Financial Statements Versus Business Activities

I recently spent some time in California with a large accounting firm. We got on the topic of the financial statements. I asked them how their business clients embraced the financial statement discussions. The accounting firm of roughly 100 people and 8,000 clients shared a common frustration with me: “If we could just get our business client... Continue reading

Growth Strategy for a Small Business

Have you ever heard the saying, ‘you need to spend a quarter to make a dollar’? If your business has the opportunity to purchase $100,000 worth of new product that can be resold at a 35-40% mark-up, why wouldn’t you buy it?  One reason you might not make the purchase is you don’t have an extra $100,000. Even if you have credit av... Continue reading

A Simple Solution to Small Business Cash Management Problems

I have a small business owning client who I consider to be the best at collecting money from customers. Quite a few years ago he actually went to jail trying to collect money from one customer because he tipped a desk over on him! – We don't recommend that approach! Have a conversation before the sale This conversation results in a few thi... Continue reading

Improving Business Owner to Banker Communications – 3 Tips

Bankers speak one language – business owners speak a different one – when they get together without a translator, the result is usually frustration. Don't make assumptions 1) Don’t assume that logic or reason are important to the lender – The most popular argument to a banker when asking for a loan is, 'I opened my account at this insti... Continue reading

How to Determine the Value of Your Business

Many of my business owning clients ask, “What is my business worth?” It seems like a simple question but the answer is usually complicated and starts out, “Well, that depends…” Is the valuation for a buyer, seller, estate plan, banker or a divorce settlement? Here are some basics: You will need to determine the fair value of the ... Continue reading