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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Employee Loans

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.

Watch out when employees ask you if they can borrow money.  It can mean that they have a desperate situation and that desperation can turn into disaster.

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

One of my clients has an employee who about a month ago asked to borrow $1,500. In this case my client said no.  Turned out the employee was desperate for money to pay for hospital bills for his wife who has cancer.

This past weekend, I caught him stealing $6,000.  

Whether you loan them the money or not doesn’t mean they won’t look for more.

When employees ask for a loan, in my view you should never give to them, but whether you do or you don’t we business owners need to be vigilant and more aware about stealing when an employee asks for money.

Also in most states it is against the law to withhold a portion of pay to pay for an employee loan. So don’t think you have pay withholding as collateral. 

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

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Decision Making

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 number one reason why a business fails is “Poor Decisions”. 

Not taking Care of customers 

Running out of money

Poor Planning

Inadequate Financial Management

Failure to innovate

These are all a function of Poor Decisions.

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

So, if poor decisions are the root cause of business failure, how can decision-making be improved? 

  1. Take care of customers
  2. Have a strategic growth plan
  3. Know your Customer
  4. Consistently add value to your products and services
  5. Pay attention to financial management

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

Bookmark and Share

Decision Making

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 number one reason why a business fails is poor decisions.

Not taking Care of customers 

Running out of money

Poor Planning

Inadequate Financial Management

Failure to innovate

These are all a function of Poor Decisions.

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

So, if poor decisions are the root cause of business failure, how can decision-making be improved? 

  1. Take care of customers
  2. Have a strategic growth plan
  3. Know your Customer
  4. Consistently add value to your products and services
  5. Pay attention to financial management

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

Bookmark and Share

Cutting Losses

 

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.

Matt Young, Jack Clark, Edgar Renteria and Julio Lugo are just a few of many examples of Red Sox Free Agents that didn’t work out.  Most baseball experts would argue that the Red Sox didn’t want to admit they made a mistake and kept these players too long.  The Red Sox didn’t cut their losses.

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

Many business owners keep unproductive employees way too long.  The proper strategy is to put together an exit plan for these slackers as fast as possible and cut your losses.

The moral of the story.  Hire Slow meaning take your time on the front end and Fire Fast and cut your losses.

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

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