Big problems may seem to suggest equally big actions. In my experience, however, a “small steps” approach to tackling large, complicated issues is more effective. This month’s newsletter explains why “small steps” works and offers suggestions on how to use it in your business. Read more…
Tracking profitability is essential, but it does not ensure that there will be cash to pay today’s bills when they come due. In today’s edition of Time to Act, I explain the concept of a rolling, 13-week cash flow forecast and offer some suggestion regarding how to use this in your business. Read more…
A “Waterfall Chart” shows how much money creditors will be paid, once funds are received and distributed. It comes in handy in many situations, but it’s of particular value at a time of liquidation or sale, the subject of this month’s edition of Time To Act. Read more…
“Cost of capital” is the minimum return that investors expect for providing capital to the company. If your business invests in a project that returns less than your cost of capital, the value of your business is reduced. Today’s newsletter takes a look at this important concept and offers five insights for understanding what it is and why it matters. Read more…
“Opportunity Cost” — the cost of foregoing the next highest valued alternative use of a given resource — is a critical, but often overlooked concept in business decision making. Today’s newsletter explains what opportunity cost is and why it matters, and offers five simple guidelines for leveraging its power in your organization. Read more…
I come across many business people who think their businesses, customers or products are making money when such is not the case. In today’s newsletter I explain what it means to make money and discuss four areas that are often worth probing to better understand if your business, customer or products really are making money. Read more…