Often, business owners incorrectly assume their business is profitable because they rely solely on financial statements. While these are certainly important, a true picture of business profitability requires understanding economic profit as well. In today’s newsletter, we explain the distinction and look at why evaluating economic profit is critical in assessing true financial performance. Read more…
Every business runs on dollars — but there are limits to purely financial analysis. When tracking performance and working to maximize the output of critical measures, it is important to look beyond just financial indicators and consider other factors as well. In today’s newsletter, I share examples of additional, quantity-related measures that should be included in the overall mix. Read more…
Every well-run company relies on data to operate the business. But using the wrong data or looking at it in the wrong way can lead to faulty “insights.” This month, I take a look at how data should (and should not) be used by businesses when attempting to draw conclusions and make decisions. Read more…
When it is not possible to turn a financially troubled business around, selling is usually the best option. However, selling a distressed business is not the same as selling a healthy one. Today’s newsletter explains why and offers suggestions — and cautions — if you find yourself in this position. Read more…
Choosing an appropriate bank for your business is a non-trivial, yet often overlooked decision. A good match is important, and changing lenders is never simple. In today’s newsletter, I lay out the factors to consider and walk you through a typical winnowing process from start to finish. Read more…
In business, change isn’t just inevitable — it’s essential for survival and growth. But making change happen in any organization can be difficult; it requires more than just a few tweaks at the edges, here and there. In today’s newsletter, I share my firsthand experiences with organizational change and offer insights into what really drives successful transformations. By applying these concepts to your own circumstances, you will greatly increase your likelihood of success. Read more…