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 with the 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 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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Good Financial Numbers

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.

It’s very simple, if you’re going to make good business decisions, you must establish and maintain good financial numbers.  My name is Michael Barbarita from Next Step CFO with your know your numbers minute. Making business decisions without good numbers is like a doctor making a decision to operate on your ankle without the benefit of x-rays. It simply shouldn’t be done.   The first thing I do when I get a new client is to make sure they have good financial numbers so that better decisions can be made. Many business owners place a low priority on book keeping.  Please make book keeping a high priority, it is the only way to keep score and help you make the best business decisions.  And remember, the most successful business owners know their numbers.


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Fundamentals of Business

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.


Blocking and tackling are the basic fundamentals of football, but what are the basic fundamentals of business? My name is Michael Barbarita from Next Step CFO with the know your numbers minute.  Fundamental business strategy answers four basic questions: Number one, what business are we in?, Two, who is the customer?, Three, How does the customer define value?, and then Four, how do we deliver that value?  When we business owners get off track, answering these fundamental questions will put us right back on track.  Sometimes we need to go back to the blocking and tackling of business.  And remember, the most successful business owners know their numbers. 

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Old Phone Numbers

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.

Here is a play that I make in order to obtain more revenue and profit.  I have been doing it for years and it has worked for me.My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  The play that I make that is very simple is I find telephone numbers of competitors that have gone out of business and I call the telephone company and have them forward those phone numbers to my main number. I think it costs about $20 per month.You get calls from people who have older yellow page books or simply from internet searches that have the old information.  When the customer says they thought they were calling the defunct company you simply say that you took them over.  The result is you do more business.And remember, the most successful business owners know their numbers.

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Financial 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.

An injection of capital into a business can be as temporary as an injection of sugar from a snickers bar if proper financial management is not in place.  

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

Proper financial management starts with managing cash flow.  One of the basic things that you can do to get clarity on cash flow is invoice on time and have an accounts receivable collection policy.  

Click on the “Learn More” link right inside this video for another video of one of the strategies I use in collecting accounts receivable.  If consistently applied you will find that over time your collection of accounts receivable will be faster.

And remember, the most successful business owners know their numbers.

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Financial Information Infrastructure

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.

Think about this: If you expect to beat your competition, you must have better financial information than your competition does!  

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

If you have better financial information than your competition then you will make better business decisions than your competition and you will know things they don’t know.

But Having accurate and better financial information not only includes having an accurate income statement and balance sheet. It means having what is called financial information infrastructure which includes things like a business and cash flow forecast, accurate product and service costs and complete sales information. It’s Financial information Infrastructure that will give you a competitive edge.

And Remember, the most successful business owners know their numbers.

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Factoring Accounts Receivable

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.

Selling your accounts receivable today, at a discount before the receivables are collected is called factoring.

There are 3 things that need to be present before it is a good idea to factor

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

Those 3 things are:

First, The Company has growth opportunities that they have identified

Second, The Company has solid and consistent profit margins; and
Third, the company has customers who pay on time.

And remember, the most successful business owners know their numbers.

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Expanding Your Business

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.

One of the things we business owners need to pay more attention to is doing what we do best and capitalizing on it.  All too often we see other opportunities and they look great and they might even be for big bucks but we don’t do them well or our employees do not have the proper skill set and it ultimately it turns into a loss or much more trouble than it was worth.

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

There is no question you can grow your business by expanding your horizons and getting into new product or service lines, but you need to make sure that you are good at it and that you have the proper skill set and strategy to beat the competitors who are already doing it well. 

If you can’t be great at it, continue to strengthen what you do well and be the best.  Because there’s always a market for someone who is going to be the best.

And remember, the most successful business owners know their numbers.

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Employee Theft

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.

Would you steal from the company you work for if it meant keeping your home and keeping a roof over your kids head?  Unfortunately some people would.  Employees you have now could be contemplating that exact question

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

80% of all theft is employee theft.  One surefire way to tempt an employee to steal is give that one employee multiple financial responsibilities.  

I caught an otherwise honest employee stealing $18,000 in less than 3 months. She needed the money because she was facing foreclosure. She was responsible for all of the financial activities in the business and had access to everything.  Also, now with online banking you can do more frequent bank reconciliations which will help you catch unusual transactions more quickly 

And remember, the most successful business owners know their numbers.

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