Budgeting

Cut Costs Wisely

Many companies have experienced or are continuing to experience a decline in sales. For many it has been significant. Without adequate sales, it is a struggle to cover costs and be profitable as well. Some companies have addressed this by borrowing more. While there may be some situations where this is necessary, many times it would be better to cut costs and manage assets and liabilities more effectively. Remember, those loans will have to be repaid at some point and this can place a heavy burden on a company.

There is a Downside to Cutting Costs

You may have decided to cut costs (expenses and asset purchases) as a way to address the decline in business. Good. That is one of the first and more effective things you can do. But, you need to cut costs wisely. For example, Read the rest of this entry »

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3 Reasons Prices Will Increase

As you know, even though the price of things is driven down as competition and sales increase, that is not the general trend. Yes, this will continue to occur, but over time prices increase. Here are 3 reasons prices will increase.

Healthcare

As the Patient Protection and Affordable Care Act (Obamacare) takes effect, with full implementation in 2014, there will undoubtedly be Read the rest of this entry »

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Healthcare Law Impact

As you certainly know by now, the results of the November 2012 election made it a certainly that the Affordable Care Act (Obamacare) will be implemented over the next couple of years. Just what does that mean to you?

A Nightmare

This law will have major effects on nearly all businesses, particularly those with over 50 employees. The requirement for employers with over 50 employees to provide health care or pay a fine creates a dilemma for many. Some will decide that the increases in premiums that are expected present Read the rest of this entry »

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Another Financial Downturn?

If you are like many business people, you are probably wondering if the U.S. economy is headed for another financial downturn. The uncertainty from Washington makes that understandable.

What We Know

With the last minute legislation passed at the end of 2012, the tax rate picture is a little clearer. We now know that those in approximately the top 2% of income will pay a higher marginal tax rate. This in itself probably is not enough to cause a major financial downturn. In addition, we also know that Read the rest of this entry »

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Have You Reached Your Goal?

Have you reached your goal yet? Okay, this is a trick question, set me elaborate.

Goals

In a prior blog posting (What Are Your Goals?), I discussed the use of the acronym SMART when setting goals. As I mentioned in that post there of some variations of this acronym, but it is Read the rest of this entry »

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Hidden Danger of Inflation

Inflation is one of those things that seem to sneak up on us. One day we are not aware of it, and then all of a sudden we go, “This price seems kind of high.” The surprise is because we don’t normally think about what we have been paying for things, but rather ignore prices until they suddenly seem out of line. This is the hidden danger of inflation in action. Oh sure, we notice Read the rest of this entry »

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Cash Flow–The Bottom Line

In the 1986 move Jerry Maguire, there is a famous line, “Show me the money.” Actually, when ever I read or hear about how profitable a business is, that line comes back to me.

Cash or Profits?

While there are any number reasons a company may fail, one of the most common is falling short of cash – that is insufficient positive cash flow. In fact, on paper some companies are very profitable yet they still fail. On the other side of this same coin, some companies remain unprofitable for an extended time and still survive because they possessed adequate cash flow. Of course, let’s be realistic here – a company cannot continue forever being unprofitable. But, profit alone is not enough. Read the rest of this entry »

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Shopping Insurance

Do your business insurance rates go up every year? If you don’t know, then take a look at what you were paying the past 2 or 3 years and what kind of coverage you received. Here I am speaking primarily of business casualty insurance, but the same concept applies to group health, life, and short and long-term disability insurance.

Renewal Is So Routine

If you are like many companies, you have used the same agency for many years to obtain auto insurance, workers compensation, general liability, property, and product liability insurance. Of course, many businesses do not need product liability insurance, but it falls in the same general category of business insurance. If it is true that you have used the same agency for years, you may have fallen into the routine of Read the rest of this entry »

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Implementing the Budget

In an earlier post, some of the reasons why companies are always going over budgeted expenditures were discussed. Also in a previous posting, some of the pitfalls of planning a budget were discussed. See Do You Budget Like the Government?  Now let’s look at an intermediate step, implementing the budget.

First Things First

Before you can ever hope to implement a budget and realize any benefits from having one, you must first Read the rest of this entry »

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Do You Budget Like the Government?

If you keep up with the state of the U.S. Government’s finances, you will understand the title of this article. It has become all too common to hear the debt limit is being increased again.

Your Business is not the U.S. Government

You knew that of course. However, many businesses budget and Read the rest of this entry »

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