Posts Tagged ‘budgeting’

Have a Lean Business

Have you ever tried to lose weight? If so your experience may have ranged from easy to difficult. When it comes to reducing costs a business may have a similar experience. By costs I’m referring to both product cost and expenses. Why do some businesses find it easy to reduce costs while others struggle and eventually stop trying?

Think Lean and Communicate It

Like losing weight reducing costs starts with Read the rest of this entry »

Share

Business Plan Framework

My last posting, The Flexible Business Plan, discussed the benefits of having a simple business plan that easily modified rather than a complex and detailed plan. Let’s now take a look at a way to do this.

A Little Anatomy

As you certainly know, a doctor doesn’t just study the outside of a human body. They need to know what is inside, including the skeletal framework on which everything hangs. Artists do the same thing when they study anatomy to understand how the skeletal structure impacts appearance of the rest of the body. With that understanding the artist is able to more accurately depict the human form.

A business plan has a skeleton as well that I refer to as Read the rest of this entry »

Share

Simplified Management Accounting

If you are not specifically an accountant but have responsibility for managing profit, what should you know about management accounting? Before we get into this, let’s first look at a definition.

Management Accounting

First let’s get a working definition of management accounting.  In a nutshell it is the providing to and use of accounting information by management. It is important to realize this information may be used by both those with an accounting background and those without that background. Therein lays the problem that should be Read the rest of this entry »

Share

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 »

Share

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 »

Share

A Company Diet

You may be wondering what I mean by a company diet. Have you ever had the experience of stepping on the scales, then being in shock at your weight gain. It seems as if the pounds came from nowhere, in essence just creeping up on you. However, if you were to take some time to think about what you have been eating, look at your exercise routine, and consider if you are getting adequate sleep, you just might be surprised that your weight gain is really no surprise at all.

A Company Weight Gain

Okay, I know we don’t weigh a company, but actually something goes on in most companies similar to Read the rest of this entry »

Share

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 »

Share

Why You Never Hit Budget

I can recall numerous times where management had a meeting to discuss financial results.  Here is a typical interchange from one of those meeting.

Company President, “Why are promotion expenses twice what was budgeted?”

Marketing Head, “That can’t be correct.  Accounting recorded something wrong.”

Controller, “We have carefully checked every item.  I can get you the detail.”

Company President, “What do we have to do to stay within budget?”

A Conversation Going Nowhere

Have you ever been in a meeting where the conversation was similar to the above?  Did people get defensive, take sides, or even pass the blame in the form of, “You didn’t control your spending” or “You recorded something wrong” or “We budgeted too little.”  Interesting, all of these comments revolve around Read the rest of this entry »

Share

The Business Plan – Hold On to the Napkin

Hmm, a blog called “Your Business Plan – Hold On to the Napkin” would seem to contradict one of the things I do, i.e. Business Plans.  But, allow me to explain.

Sometimes You Really Do Need a Full Business Plan

There are numerous reasons you may need a full, Detailed Business Plan.  Some of the reasons include obtaining financing, your business is highly complex, you are trying to change the direction of a business, or you simply are the type who needs details.

The Trouble With a Full Business Plan

If you have had a formal business plan before or even have one now, think about how you actually utilized it.  If you are like many, you ether Read the rest of this entry »

Share

Enter your email address:

Delivered by FeedBurner