There are actually three types of patents. Two types are very common but it’s the third type of patent that is not common that I was able to tell my new client about to help increase the value of his business.
My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.
The most common types of patents are utility patents when one is seeking protection for the use of an invention and a design patent when one is seeking protection for the design of an invention.
My new client is a florist and I introduced him to the 3rd and most unpopular type of patent and that is the plant patent granted for any reproducible plant. He never knew about it.
And remember, the most successful business owners know their numbers.
The most important information needed to properly manage a company in the trades is tracking direct labor hours.
By knowing direct labor hours all types of insightful metrics can be calculated.
My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.
With direct labor hours you can figure out all of your hourly costs, including material labor and overhead costs per hour. You can also calculate labor efficiency metrics. So if you are a business owner in the trades who feels they need more control over their business and really needs to hone in on what their services cost, track direct labor hours.
And remember, the most successful business owners know their numbers.
It’s often said that leaders are ordinary people with extraordinary determination. As leaders, the main challenge that today’s business owners have is keeping themselves inspired, because when the business owner is inspired their employees are inspired.
My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.
Because of the vicissitudes of owning a business it is really difficult for the business owner to stay inspired.
One of the things I have to do with some of my clients to try to keep them inspired is to have them reflect back on the excitement they felt when they first started their business, because it is likely that those fundamental opportunities that they saw then still exist.
And remember, the most successful business owners know their numbers.
If you are looking to buy a franchise, you need to produce a realistic 3 year business and cash flow forecast projection so you have a much better idea of how much start-up operating capital you really need.
My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.
The franchisor will tell you how much money you need and so will other franchisees, but at the end of the day, everybody’s situation is different and the #1 reason why a franchise fails is a lack of startup capital.
The forecast will also be able to tell you how much working capital you will need for multiple what if scenarios. For example, what will happen to cash flow if sales are off 20% from what the franchisor is telling you?
What is the cash required then?
Because remember, the most successful business owners know their numbers.
