Tag Archives | business planning

Small business

Choosing a Successor for Your Family Business

There’s an old saying regarding family-owned businesses: “Shirtsleeves to shirtsleeves in three generations.” It means the first-generation owner started in shirtsleeves and built the company up from nothing but, by the third generation, the would-be owner is back in shirtsleeves with nothing because the business failed or was sold. Although you can’t guarantee your company […]

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KPI - Key Performance Indicator word cloud, business concept

Do Your Financial Statements Contain Hidden Messages?

Over time, many business owners develop a sixth sense: They learn how to “read” a financial statement by computing financial ratios and comparing them to the company’s results over time and against those of competitors. Here are some key performance indicators (KPIs) that can help you benchmark your company’s performance in three critical areas. 1. […]

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No Surprises! Seek Expertise from a CFO.

Luca Pacioli and Benedikt Kotruljević have historically been both credited for inventing the double entry bookkeeping system we know of today. This invention has been the fundamental backbone of the accounting profession since the 15th century. However, ever since the advent of the double accounting system, there has always been a need for someone to […]

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Acronym EBITDA on wood planks

Look Beyond EBITDA

Earnings before interest, taxes, depreciation and amortization (EBITDA) is commonly used to assess financial health and evaluate investment decisions. But sometimes this metric overstates a company’s true performance, ability to service debt, and value. That’s why internal and external stakeholders should exercise caution when reviewing EBITDA. History of EBITDA The market’s preoccupation with EBITDA started […]

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businessman in shirt and tie holding dumbbells

How to Shape Up Your Working Capital

Working capital — current assets minus current liabilities — is a common measure of liquidity. High liquidity generally equates with low risk, but excessive amounts of cash tied up in working capital may detract from growth opportunities and other spending options, such as expanding to new markets, buying equipment and paying down debt. Here are […]

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