Most business owners think of Working Capital as the amount of cash they have in the bank. But virtually all financial analysts, advisors and lenders define it as the difference between Current Assets and Current Liabilities. One sounds simple and easy to understand,...
If you’ve struggled during the past year or so, let me tell you a story about the journey of one small business owner who started out on the wrong foot but found a way to recover. Back in the 80s, after a couple years of military service this young man started...
Nick Neimann, a business friend of mine (we occupy adjacent seats on a family owned business advisory board) wrote a book a few years ago to help family business owners think about their exit in a more effective way. His book, “Fourth Quarter First,” tries to get...
Call it leverage. Call it borrowing. Call it debt. All ways of saying that you got a loan to help your business grow (or, in 2020, to survive). This is not the free debt you get from delaying paying your bills, this is: go to the bank, ask for money, agree to pay...
I have thought often about the need to say something about cost accounting because of its importance in creating a profitable business, but I knew the mention of the term would put even most accountants to sleep. So rather than talk about cost accounting, a few words...
Pick up any business newspaper today and someone will be opining on the interest rate yield curve. Is it going up, going down, reversing, inverting, or just resting quietly? You’re busy running a business that isn’t a bank, so what’s that all about? Why do you care?...
