Business Management Advice

January 4, 2016

How to Manage Profit & Loss

very business must focus continually on managing profit and loss to remain solvent. Profit is the money a company keeps after paying all of its expenses. A loss results from expenses exceeding the amount of sales a company makes in a specific accounting period. Companies must manage their income statements, also known as profit and loss statements, to keep earnings positive and expenses under control and in line with revenue. Initial Financial Assessment Managing profit and loss begins with an assessment of the company’s current financial position. Management must review the current profit and loss statement and compare it to the company’s last two or three years of historical data. An accountant or analyst can use this information to establish […]

December 14, 2015

Mastering the Art of Negotiation

Wouldn’t it be a different world if everybody thought the way you did? If everybody spontaneously conformed to your every wish, your every thought, your every feeling? Since life doesn’t work that way, you would do well to become skilled at the art of negotiation. In negotiation, after all, neither party holds all the aces. Instead, negotiation proceeds (or should proceed) on a rather level playing field. Since both parties want to win, what is the best way to proceed? Here are five steps. 1. Establish the relationship The wise negotiator establishes the relationship before proceeding further. Doing so allows you to get a feeling for the person with whom you are dealing, and vice versa. Though often ignored, “feeling” itself is […]

December 1, 2015

Managing Subscription Business Model

The subscription business model has grown rapidly in recent years with e-commerce (Birchbox), entertainment (Spotify and Netflix) and media industries all adopting it as an alternative to one-off purchases. Here are guidelines for small business owners on running a successful subscription business. From Netflix to Dollar Shave Club, monthly and annual subscription services are all the rage right now in the industry. Consumers get convenient access to unique products and services where they don’t have to pay upfront, and businesses get a recurring source of revenue and potential to serve long-term customers. The subscription business model itself has been around for decades – paying weekly rent is a good example – but many traditional product-centric industries are moving to subscription […]

November 16, 2015

Your Retirement Checklist

Small business owners focus most of their energies on starting, running, and growing their businesses. Some do not plan to retire, but others assume that at some point they will retire … and, of course, they will die. Unfortunately, according to a study, nearly 40 percent of owners don’t have a retirement income strategy; they assume the proceeds from the sale of their business will provide them with financial security. This is so even though only half of all businesses have had any appraisal within the past three years. Assumptions and lack of action can undermine a secure retirement or cost heirs dearly. There are important things to do before you retire. Below are some actions to take – now. 1. Get […]