Don’t become another failed business statistic

Don't become another failed business statistic

The failure rate of small businesses in the United States is staggering. And most failed businesses can attribute their lack of success to the owner’s lack of understanding of basic business principles. Providing quality goods and services in a timely manner is just the first step in running a successful business. As the business owner, your job is to manage the success of the business. One way to do that is watching the company’s operating cycle. Your operating cycle is the time it takes from producing a product or service to collecting the payment from the customer. The longer your operating cycle, the better your chances of having cash flow problems. As the business owner, you must decrease the amount of time to collect your receivables to become and remain a healthy company. Take time and regularly review your accounts receivables. Don’t become another failed small business.

Life happens. Sometimes your dreams turn into nightmares.

Life happens. Sometimes your dreams turn into nightmares.

Starting a company is not easy.  There are times of enormous stress. Times when you wonder if it is really worth doing. Times when you are just ready to quit and walk away. But walking away will cost your people their jobs. Walking away will cost your investors their funds. Walking away will cost you your reputation. So you keep going. And you keep losing sleep. It is hard to understand the stress of owning a business. Yes, you may have the next great idea. But reading books on leadership and business organization will never prepare you for having to fire people because of a bad decision. Or bad timing. There is no secret formula for success. Sometimes, things just do not go as planned. Life happens. Seek out a mentor. Find someone who started a business and succeeded. Lean on their advice. Because sometimes you will need it.

Risky business: managing risk in the small business world

Does your bucket have a hole in it?

Once someone knows that you are a reader, they will ultimately ask you, “What’s your favorite book?” Now, this is never an easy question, and it seems that I always have to stop and think before giving an answer. And I usually lay-up by providing a list instead of a definitive title. This list is constantly evolving as I continue to read more books. But one book that always makes the list is Charlotte’s Web by E.B. White. Charlotte’s Web is one of those classic books that requires rereading throughout life. It can be equally enjoyed by a small child and a grown adult. I remember reading this book aloud to my children before they were old enough to read for themselves. I am sure my daughter dreamed of being Fern, rescuing the runt pig from her heartless father. Meanwhile, I was thinking about John Arable, yielding to the pleas ...

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Helpful retirement options for successful entreprenuers

Entrepreneur Retirement Options

I had a great meeting with one of my long-time small business clients last week. The client is a family business established many years ago by Mom and Dad and is currently in a transition period. Mom and Dad are in their seventies and their two sons are beginning to take over daily operations of the company. All four family members are stockholders. The meeting was with the four to discuss the current fiscal year-end. One topic that came up concerned Dad’s ability to continue to receive income from the company. He is looking ahead at either fully retiring or substantially stepping away from daily operations. Dad, who I will refer to as Jerry, has been contributing to the company’s retirement plan. But he is concerned that distributions from the plan will not be adequate for his retirement. More importantly, he wants to receive an income stream from the company ...

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About David

About David

David is an accountant and adviser for small business owners. He also coaches clients on leadership and success. David is an avid reader. He blogs regularly on the books that he is currently reading.

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