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Tag Archives: business finances

When Less Money is More Money

Here’s a sad story about trying to get more money when the end resulted in far less money: A business was owned by two friends. The relationship soured and as a business advisor, I was attempting to facilitate an agreement for one partner to stay and the other to exit. The most probable buyer offered over half a million dollars. The other partne... Continue reading

Establishing a Baseline for Business Growth

Since it’s the beginning of a new calendar year, it’s a great time to make sure your business has a baseline for measuring growth in 2013. If you can measure your activities and results properly, you can quantify your growth. Each of the following should be available to you for each month of last year as well as the total for last year: Reven... Continue reading

Focusing on Customer Retention is Profitable

If you would like to increase the number of customers your business has, the default thinking is to add more new customers. This is your customer acquisition rate. If you start the year with 1,000 customers and your acquisition rate is 15%, you can’t assume your customer count will go up to 1,150. The reason is that you also will lose customers ... Continue reading

Instant or Deferred Gratification?

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? There is a philosophy out there that says to wait – to defer to the future. This is based on the assumption that when a business does ... Continue reading

Vacation – Tax Deduction?

Wouldn’t it be great to take a winter vacation and get a tax deduction too? The first person to convince is your tax advisor and the second review could be by the income tax authorities. Here are some tips to assist in your negotiations: Be real – I am strong supporter of getting away from the day to day business distractionsto focus on st... Continue reading

Discounting Your Price or Value Add?

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? 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 $100 for free as part of th... Continue reading

Increase Business Profits – 1 Tip

It's simple. Learn to say NO! Many business owners have trouble saying no, and it costs them financially. Here’s why: 1) Customer selection criteria - Let’s say you have a current customer who consumes a lot of resources and also owes you money. If they want more credit to get more services, the correct answer is NO. You are already l... 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