am i earning enough

The Simple Question Every Business Owner Needs to Ask: Am I Earning Enough

Here’s an interesting exercise to do. It’s easy, and only requires basic math and some record keeping and it answers a very important question that all business owners need to ask themselves. The question is this: How much do you earn, net, per hour of work? Or put another way, how much cash lands in...

Financial Foundations 2 Mind the Bank

Financial Foundations 2: Mind the Bank

After you start to make money, you need to put it in the bank and hold on to at least some of it. After all, it’s your money that fuels business growth, provides for needs, and ultimately leads to a lifestyle of freedom, abundance, and charity. I recommend that you have 2-3 months expense...

Financial Foundation 1: We Are In Business To Make Money

Financial Foundations 1: We Are In Business To Make Money

This is the first in a series of articles on the most important principles of finance. Several years ago I was in an accident, and following it I asked myself, “If I knew that I was no longer going to be able to work, what would I say that would let my message to...

fiancially savvy ceo

How to Become a Financially Savvy CEO

Have you noticed how many skills it takes to be the owner and CEO of a small business? I find it one the joys, and an occasional challenge, of running my own small business. Over the past few years, I have learned a lot about marketing, setting up and maintaining a website, and writing/producing...

Protect Your Business in 2017

Protect Your Business in 2017

In the past six months, two businesses in my neighborhood have gone out of business due to major fires. The woodworking shop’s fire was so intense that it warped the I-beams, and the deli’s fire closed both the business and damaged the housing on the second floor. Fires, theft, power outages, computer viruses, and...

Do You Have the Right Mindset to Create a Profitable Business

Do You Have the Right Mindset to Create a Profitable Business

As I meet fellow small business owners and entrepreneurs through networking and referrals, I am curious to see how well each person understands financial concepts and if they have the skills needed to manage their business’s finances, such as creating a budget, planning cash flow, or overseeing their bookkeeper, to create a profitable business. This...

raising prices

5 Things to Consider When Raising Prices

Of everything that we can do to boost our bottom lines, raising prices tops the list.  The book Price Yourself Right references two different studies that confirm this.  In both studies, different changes—price increases, supplier expense decreases, and overhead controls—were tested to see which had the greatest impact on the bottom line, and price...

3 Financial Roles Every Business Needs to Maximize Success

3 Financial Roles Every Business Needs to Maximize Success

As I talk with entrepreneurs to learn about what they do and how they manage their finances, it seems that many are missing an important component of what they need to maximize their success—and this missing component is actually a member of the financial team.  During these conversations, I talk to them about the...

The Difference Between Finance and Accounting — and Why it Matters

The Difference between Finance and Accounting — and Why it Matters A number of years ago a friend, an MBA from an Ivy League business school, asked me what the difference between finance and accounting was. Up to that point I had not thought about it myself since my career had me in both worlds. We talked about it for...

5 Ways to Make Financial Reports Clearer

5 Ways to Make Financial Reports Clearer Recently I visited my college friend Alice—a friend from college, fellow small business owner… and now my optometrist.  As she was checking my eyes out, she tried different lenses in the phoropter and ask “Which looks better, this,” and after making and adjustment, “… or this?”  During this...