It’s been 191 consecutive Tuesdays. Didn’t miss a single one, not even when I was sicker than I’d been in over 20 years having found myself in emergency 2 days earlier, this weekly commentary on matters germane to small business, family business, your business, was written and shared with you. When my advisor instructed me […]
Without direction, how do you know where you’re going? And we’ve acknowledged many times in this weekly commentary, if you don’t know where you’re going how would you know if you’ve gotten there? Who sets the direction for your business? Without direction and a charted course, your business is akin to a rudderless boat, just […]
“It’s not what you make, it’s what you keep!” Prophetic words that apply to every business and simplifies the importance of profit. Profit Margin is calculated as “Net Profit” divided by “Gross Revenue.” Essentially this calculation tells you how much of every dollar earned in gross revenue is actually profit. The smaller the profit margin, […]
Recessions happen. In cyclical industries, the effect of a recession on a business’ results is magnified similar to how the benefits of a market boom are magnified. Industries that are less cyclical do not experience such swings in results and therefore appear to be more stable. These industries are less elastic (think about grocery stores, […]
In this edition of KYN: Know Your Numbers™… The Asset Turnover Ratio is one of my favorite metrics, especially when working with farm businesses. Despite what one may infer by the name, this ratio is not a promotion of turning over assets any faster than they already are. Quick turnover of assets is a major […]
We’ve all heard the anecdote “Speed Kills” as it was used to advise drivers to slow down. Former Canadian Football League (CFL) player Jason Armstead had “speed” and “kills” tattooed on the back of his left and right calf; as one of the fastest players in the league during his playing days, Armstead’s speed as […]
In this edition of KYN: Know Your Numbers™, we build on the previous topic of Debt Ratio by looking deeper at Debt Structure. Debt Structure refers to the ratio of current/short term debt to long term debt in your business. This metric provides insight into how you are financing your business’ needs. Those who know […]
You have probably been told that knowing your numbers is critical to your business management success. Truer words are rarely spoken. However, it is not lost on me that there are A LOT of numbers at play, and numerous measurements you can take…it is easy to become overwhelmed! The question then begs, “Which numbers are the […]
There are many factors at play which affect your business each day. (Oh, look…I’m a poet and didn’t even know it.) How is your business affected by: NAFTA Trade Wars Real Wars Geopolitical strife Interest Rates Income Tax Sales Tax Foreign Exchange Oil Prices Commodity Prices Utility Prices Inflation Deflation Theft and Vandalism Weather and […]
One of my investment advisers forwarded an article to me recently that contained an especially compelling paragraph. The entire article is US focused, penned by a US writer and published in a US publication (reprinted in Canada in the Financial Post.) Still, the applications of these two sentences are broad and deep: “…it (recent economic […]