By Jeffrey Appleman Manufacturers are focused on sales—not cost or profit. If they were keen on net income, manufacturers would know one key data point: contribution margin. Once you know it, the possibilities are endless for growth, sustainability and efficiency. In effect, a contribution margin is the percentage of revenue that remains after you pay…
Profitability
By Chris Delaney When it comes to managing their business, manufacturers need much more than historical financials to project their future revenue, profitability and liquidity. Historic numbers simply capture what has happened in the past—but traditionally do a poor job predicting where a company will be in the near (3-6 months) or distant future (1-2…
Increasing revenue when preparing for a future sale (or pretty much anytime!) is great but an equivalent savings in operational costs, such as supply chain and manufacturing, can provide an even greater increase in company sales price since valuations are often based on multiples of EBITDA. A $1M increase in sales may improve EBITDA by…
As a small business owner, you face many challenges when running your own company. Financial management is one of the most critical aspects of any business, but hiring a full-time CFO can be a costly and unrealistic expense for many small businesses. This is where Fractional CFOs, like those provided by FocusCFO, come in. What…
By David DeMuth Manufacturers can’t afford to wait any longer. For two years, CFOs and controllers have managed supply-chain disruptions and labor shortages, as well as surging prices. Typically, these developments could require most manufacturers to raise prices to survive. In Q4 of 2022, there is a looming recession. The generally accepted definition of a…
Coming up on mid-year, you might be reflecting on the first half and are either looking to course correct or finish strong. What are you going to start doing, stop doing, and keep doing? One of the ways to determine this is to look at the key metrics of your business and see if you’re on…
Program produced by XPX Atlanta. Mechanics of a deal directly influence whether a seller’s financial goals can be achieved. Learn from experienced advisors how to optimize each step of the business sale process to ensure a successful transaction and maximize total proceeds from the deal. Moderator: Barry SelvidgePartnerNewport LLC With over 30 years of experience…
Jun 20, 2022
For my wife’s and my 25th wedding anniversary, our family went to France. Paris, Provence, Chamonix and on the way back to Paris to catch our flight home, we went to the cathedral in Reims. The one with the Chagall stained glass and where Joan of Arc was to be crowned by King Charles in 1429 after…
“Accounting is the language of business, and you must learn it like a language…To be successful at business, you have to understand the underlying financial values of the business.” –Warren Buffett Time after time in my banking career I met with thousands of business owners who were looking for loans. Frequently, it became apparent that they had…
Supply chains and labor shortages are the chief topics among the 40 or so business owners I currently work with. Their anecdotes are widespread and widely varied. I wanted to know why, so I did some research on behalf of you, my business-owner readers. Supply Chains A broken foot was diagnosed at an urgent care…
For two Wallace Capital Funding LLC clients, a Pretend Play Center was their business dream. What is a Pretend Play Center? I had the same question. Remember running around with a large white coat on, who were you? A doctor or chemist? Or maybe you put on a red hat and said “weee, wooo, weee,…
USI is one of the largest insurance brokerage and consulting firms in the world, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to large risk management clients, middle market companies, smaller firms and individuals. Headquartered in Valhalla, New York, USI connects together over 8,000 industry leading professionals across approximately 200 offices…
Worry about cash flow is one of the top issues that keeps business owners up at night. Cash flow is like oxygen to a business and without it, the business won’t survive. Several years back, I had a client ask me, “If I’ve made $500,000 in profit, why isn’t it in the bank account?” A very good…
Whether you’ve finished your 2022 projections or not, here are 3 tips you need to know to put the finishing touches on your forecast for next year: 1. Look for tendencies in your forecasting to gain insights on things you can do to improve next year. Did you overestimate revenue and profits? Maybe you were…
Free webinar to learn about expensing and depreciation strategies to counter upcoming tax increases. Presentation will include the following. Bonus Depreciation Cost Segregation Little know safe harbors Expensed repairs vs capitalized improvement property And much more. Here is the link to listen to the recording of our recent webinar on Expensing & Depreciation Strategies. https://register.gotowebinar.com/recording/6834270028077573382…
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The Red Sea disruption forcing ships to go around Africa creates a new Supply Chain reality. It can lead to late deliveries of inventory resulting in disruptions affecting business globally. One of the noticeable issues is the Reuters report, “Tesla, Volvo Car in Europe Pause Output of Certain Car’s models.” Besides the production disruptions, late…
THE CRITICAL QUESTION FOR BUSINESS OWNERS: DEFINING SUCCESS – WHY ARE YOU ON THIS ROAD? By Ladd Hirsch on April 15, 2024 “If you don’t know where you’re going, any road will take you there.” — From Alice’s conversation with Cheshire Cat from Lewis Carroll’s Alice in Wonderland For business owners intently focused on growing their…
It’s midnight. Your recycling bin is overflowing with rejected resumes. Your eyes can barely focus on the letters in front of you — and you have this uneasy feeling that you are about to invest in another candidate who just isn’t going to work out. This has been a vicious cycle over the past several…
“I should demote myself!” joked the head of sales. “It looks like I am better at selling than at managing a sales team.” We were looking at his team’s individual sales numbers. He was selling more when he was a regular salesperson than his whole team today. We too often promote the wrong person into…
Effective March 12, 2024, New York Labor Law prohibits employers from requiring employees and job applicants to provide information about their personal accounts. If you think this sounds familiar, you are right. This idea has been in place in various states for years; now New York is joining in! Under the new legislation, “personal accounts”…
Unlocking Retirement Savings to Fund a New Business Many people have dreams of starting a business but lack the capital or funding needed to launch their new business ideas. It’s true: It costs money to start a business. The US Small Business Administration (SBA) says that how to fund a business is one of the…
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