Work On Your Business Not In 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.

The most common strategy I employ when a business owner asks me to scale their business and make it more valuable, is getting the business owner to work on their business instead of in their business. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. The small business owner needs to get out of the small day to day activities of the business and needs to work on bringing more business into the company and implement more systems and doing more strategic and people planning. In the long run, this strategy will not only make the company more profitable, but it’ll also make the company much more valuable. After all, if you were buying a business would you rather buy a job, or buy a business where everything runs systematically without your involvement? And remember, the most successful business owners know their numbers!

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Where is my Money

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 most common questions I’m asked when meeting a potential client for the first time is: “I’m doing all this business, and making a profit, but where is the money?” My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Where is the money? Well, cash has hiding places. Cash can hide in a number of places, but here are just a couple of places where cash can hide: Accounts Receivable is one, the second one is Capital Expenditures, another one is Principle Reduction of Loans, another one is Pre-Paid Expenses, Too Much Inventory, Paying Bills Too Fast, Stalk Holder Distributions. These hiding places don’t show up in the bottom line of a PnL, so you can be making money but the cash is in one or more of these hiding places. And remember, the most successful business owners know their numbers!

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What You Can Afford

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.

The most popular question that I get asked from business owners is the “Can I afford it?” question. “Can I afford a new piece of equipment?”, “Can I afford a new location?”, “Can I afford more personnel?”; the way this question is answered is through a business and cashflow forecast. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. The business and cashflow forecast is so revealing in terms of understanding what you can afford that the business owner can’t help but to develop and implement the right strategies to be able to acquire what they need. And remember, the most successful business owners know their numbers!

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What if Scenarios

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.

Most cfos say when you forecast, you should plan two forecasts: a plan A and a plan B. I ask if you, if neither plan A or plan B occurs, what then? My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Today’s business owner needs to be prepared for multiple what-if scenarios and they need a CFO who can provide what-if capability. In addition to providing multiple what-if scenarios, I’m able to update those scenarios on a continuous basis, adapting to changing business conditions, because we don’t know what tomorrow will bring. And that’s why we forecast. And remember, the most successful business owners know their numbers!

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Value of Business Owners

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 is the value of acquiring a new customer? We business owners need to understand the lifetime value of a new customer because it helps us make better decisions in marketing and advertising–not to mention, help with forecasting. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Generally, in determining the lifetime value of a customer, you need to take the average sale per customer and add a factor for repeat business and/or referral to another customer. There are present value calculations as well. With knowledge of this metric, we can make better decisions on how aggressively we can spend on marketing and advertising. And remember, the most successful business owners know their numbers!

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Traits of Successful Business Owners

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.

Today the world of sports and the world of business have a lot in common, but there’s one thing in particular that a sporting event and a successful business owner definitely have in common. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Like in a sporting event, a successful business owner is always keeping score. A successful business owner knows their numbers. They know things like their operating costs per hour, they understand their cash cycle, they know their overhead rate, and they track all their numbers on an on going basis. If you want to make better business decisions, and you want to evaluate the performance and productivity of your business you must know your numbers. Having financial dashboards will facilitate this process. And remember, the most successful business owners know their numbers!

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Traits Of Good 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.

A former NBA basketball coach identified three things that all of his players must have in order for the team to be successful and it just so happens that business owners need the exact same things from their employees. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Those three must haves are, number one: the employee wants to be there. When an employee wants to be there it creates a positive inertia that rubs off on other employees and customers. Two: the employee wants to be coached. Sure they can bring certain skills to the table, but are they willing to learn more? Number three: the employees want s to be great. Employees with personal motivation and drive will always try to find ways to contribute and add value. Do your employees have these qualities? Because remember, the most successful business owners know their numbers!

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Trademarked Names

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.

Beechwood aged. I know what you’re thinking, and you’re right: Beechwood aged is a trademarked term from none other than Budweiser. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Did you know that the vast majority of beers are beechwood aged, but only Budweiser can say that. What is beechwood aging? I don’t have a clue, and you probably don’t either, but it sounds good and makes you think of Budweiser and that’s all that counts. We business owners need to think of these types of trademark-able names in our businesses, whether others do the same thing or not. It builds value in your business. And remember, the most successful business owners know their numbers!

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Tracking Numbers and Metrics

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.

Have you ever noticed when you want to bring more understanding to something, you explain it in numbers? For example, on a scale of one to ten, how did you like that movie? What do you think the percent probability is that you’ll get that client? How was the turn out at your webinar? A numerical answer to these questions brings a greater understanding than if you answered the questions without numbers. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Numbers bring clarity to all things, especially in business. Numbers create a greater understanding of why certain business conditions exist, or the mere discovery of a problem in a certain area of business. Tracking metrics is the perfect tool to bring clarity and understanding to your business. Metrics are financial parameters that evaluate the performance and productivity of a business. And remember, the most successful business owners know their numbers!

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Tips for Manufacturers

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 many business owners of manufacturing companies don’t realize is that you have to sell the same ONE unit of product THREE times, or you won’t be successful. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Many business owners of manufacturing companies think all you have to do is sell that big order to a distributor or a big box store and it’s time to strike up the band. Nothing could be further from the truth. A manufacturer has to sell that same unit of product to the distributor, they have to sell it to the retailer, and they have to sell it to the consumer. If they don’t, that big order will come right back to them. The distributor will not take responsibility to sell your product, nor will the retailer. Which means, your business has to be properly funded so you can market and advertise to all THREE of these customers. And remember, the most successful business owners know their numbers!

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