Peace of Mind

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.


On Wall street, uncertainty in the future of American business has a tendency to drive the stock market downward. Business owners who have uncertainty in the future direction of their business feel like their business is heading downward. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Having clarity in what the future holds for your business and knowing how to jump over any foreseeable hurdles gives the business owner tremendous confidence and control. A business cashflow forecast is the tool of choice to increase clarity and provide the business owner with more future certainty and more control over their business. And remember, the most successful business owners know their numbers!

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Payback

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

To purchase, or not to purchase? That is the question, here is the answer: We should never ever purchase equipment unless one simple word is in play. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. That simple word is payback. Payback is defined as the length of time it takes to recover your investment. If that length of time is a year or less, the investment you make is almost a no-brainer. If it’s longer, you need to make a more technical analysis. Remember, the most successful business owners know their numbers!

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Overhead

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.


Overhead profusion, otherwise known as spending on non revenue generating activities. Overhead profusion must be countered with discipline, and consistent monitoring. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. If your company grew 20% last year while your overhead spending grew by 50%, you probably have some profusion in your overhead. Now I’m not suggesting you don’t invest in systems, infrastructure, people and technology, but I am suggesting that some entrepreneurs have a tendency to allow their overhead growth get a little ahead of what it should be. Watch your overhead, even when sales are growing. And remember, the most successful business owners know their numbers!

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Number Of Employees

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

How do you know if you’re over or under staffed? If sales are increasing, are you hiring too many people, or not enough? If sales are decreasing, are you cutting too many people, or not enough? My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Revenue per employee is the quantitative measure one uses to determine if they have the right number of employees. The metric is calculated by taking your revenue, and dividing it by the number of full-time employees or full-time equivalents, which basically means counting a half-time person as a half a person, and then comparing this result to your historical numbers or industry averages. And remember, the most successful business owners know their numbers!

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Neutrality

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.



In the Movie Wall Street, Gordon Gecko said to Bud Fox: “First rule in business–Never get emotional about stock, it clouds your judgment.” I’d like to add another rule of business. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. The rule of business I would like to add is there’s simply no state of neutrality. Business doesn’t stagnate. Your business is either going up, or it’s going down, and if your strategic plan is to seek neutrality, you’re likely to go down. Today, the business owner has to be proactive to keep gaining momentum. Consider growth strategies like selling existing products or services through new distribution channels, selling information or education about your products or services online, or offering a wider selection of your existing products or services. And remember, the most successful business owners know their numbers!

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Marketing Strategy

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

A marketing strategy starts, ends, lives and dies with the customer. Forget your dreams, forget about everything except the customer. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Demographics and psychographics are essential pillars supporting a successful marketing strategy. Demographics are who the customer is, psychographics are why the customer buys. When knowing the demographics and psychographics, you can construct a prototype identifying the customers’ needs and wants and also who your best customers really are. And remember, the most successful business owners know their numbers!

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Leadership

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

Lately, I’ve been thinking about humility and its role in effective business leadership. Being open about our weaknesses seems counter-intuitive to many and yet it is often one of the main difference makers between effective and ineffective leadership. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Some Leadership thoughts to consider are: Number one, to show you are human by selectively revealing your weaknesses. Two, care passionately about your employees and their work. Three, dare to be different, capitalizing on your uniqueness. Think about applying these thoughts in your day to day management and remember: The most successful business owners know their numbers!

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KPIs

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

In the world of sports, a score is kept to monitor whether a team is winning or losing. In business, what are you using to determine whether your business is winning or losing? My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. They’re called Key Performance Indicators, and they’re the scoreboard of your business. KPIs as they’re sometimes called are financial parameters that evaluate the performance and productivity of your business. One simple example is gross profit margin percent. This is an essential number for you to know and it is simply your gross profit divided by your sales. How do you know if this number is good or bad? It’s called bench marking, where you need to find the industry averages. One source I use to find industry averages is bizminer.com. Remember, the most successful business owners know their numbers!

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Inventory Suppliers

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

What type of support are you getting from your inventory suppliers to help sell their products? Many business owners don’t understand that they are helping suppliers create a market for their supplier’s products. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. I used to make sure I got from every supplier number 1, advertising money, number 2 manufacture’s rep at big sales events, number 3 special close out purchases to help promote the product line, 4, mark down money to remove small merchandise and 5, special terms to stretch cashflow. Communication is the key with your vendor. You don’t get what you don’t ask for. And so remember, the most successful business owners know their numbers.

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Inventory Management

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

Roger Buchika, a great ski retailer from Buchika’s Ski Shop in the Boston area used to say, the less inventory you buy, the more money you make. What Roger meant was is over buying inventory will kill you because you end up having to take more unplanned mark downs in order to move the over bought stock. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. One of the things that I do is gather an inventory purchase and payables plan to ensure my clients don’t over buy. Through this plan, one client increased cashflow by six figures in just one year! Affective inventory management to maximize profiting cashflow is critical in this new economy, and so remember: the most successful business owners know their numbers.

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