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Category: Managing business revenue

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

The Pareto Principle for Profit Improvement

The Pareto Principle (also known as the 80-20 rule) is named after an Italian economist named Vilfredo Pareto. While this principle can apply to many areas of business, let’s look at two possible applications in your small business: Possibility 1) 80% of your profits come from the top 20% of your customer base. Possibility 2) 80% of your custom... Continue reading

Billing by the Hour

This blog is to poke a little fun at the traditional concept of billing by the hour. I apologize in advance for grief it may cause for hard-working professionals. Is the productivity of every hour the same? Is the 8 hours of work the day before a two week vacation the same as 8 hours of work the day after a great Super Bowl party? Are the first ... Continue reading

Big Business Achievements – When to Reward Yourself

  There can be a tendency to celebrate short term business success too soon. Let’s say your business has a good month and you make a nice profit. Should you take a bonus? Should you reward yourself right away? Instant or deferred gratification? There is a philosophy out there that says to wait – to defer to the future. This is base... Continue reading

How to Increase Your Business Profits

It is fair to state that if you give a customer a ‘deal’, you could sell more than if you didn’t. But instead of giving a discount on price, have you considered adding value instead? Consider adding value As an example, if you discount a $1,000 item by 10% to get the sale you get $900. But if you offer an additional item valued at $1... 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

How to Collect Money Owed from Customers

As a business owner, when a customer is late paying their account, they typically get a lot of attention from you. You might even call them up and ask how things are going and find out if you can help them along – so they can pay their outstanding account! But when a customer pays you right away, you tend to do nothing – except cash the cheq... Continue reading

Investing in Yourself is the Best Business Investment Plan

With all the turmoil in the financial markets, the big question recently is: Where is the best place to invest your money? The answer I give to small businesses... Invest in yourself. There is no dispute that there are risks associated with the investment in your business.  However, you have complete control over the investment and can monito... Continue reading

5 Tips to Manage Your Business Cash Flow

Making a small business profit is not the same thing as having cash on hand – or your business cash flow. My advice for small business owners: Cash is king! Cash is what enables a business to pay its owner’s salary. Take control of your business finances Understand and manage your business cash flow with these 5 critical learning points: 1... Continue reading