Author Archive

Net Worth

What does the term net worth mean? And why is it something a business owner should pay attention too? The actual definition of net worth is: total assets minus any total liabilities. Let’s take a closer look at this. Net worth is a combination of money invested by the business owner and an accumulation of [...]

Net Present Value

They are predicting a very slow economic recovery. But that doesn’t mean you should wait to make purchasing decisions for your business. On the contrary, you should buy that asset — if you do so wisely. It can be challenging to determine whether or not you should make an investment. You make every effort to [...]

NPV vs Payback Method

Often times the Payback Period method is used to evaluate a purchase or expansion project. The difference between Net Present Value (NPV) and the Payback Method is that the Payback Method doesn’t discount the future cash savings/cash inflows for the time value of money. The formula for the Payback Method is: payback period = initial [...]

The Importance of Current Liabilities

Debt is a word that many business owners do not want to use to describe their financial position, yet managing and monitoring debt is a task that small business owners tend to avoid. In general, debt that is due and payable within the next 12 months is called Current Liabilities. Paying these debts will probably [...]

Year End Budgets

Year end planning is not complete without a budget. Creating a budget can be intimidating to many business owners, but it does not need to be. Simple, yet effective, budgets can be developed using MS Excel. One of the main reasons business owners procrastinate budgeting is because they do not know where to start. The [...]

Budgeting: Are You Doing It?

Whether in your business or personal life, I’m assuming you have all thought about creating a budget at one point. Many people set limits on how much money they will spend each month on eating out, entertainment, etc. Businesses are doing a lot of this too. A friend of mine recently shared with me that [...]

Back Where I Belong

Today it seems more people are following their passions. Many people in my network are pursing their business ventures based on what they love to do, and they are creating success. But there also many people who are reinventing themselves in this new economy. For the first time in six years I have a handful [...]

The Importance Of Tactical Planning In Your Business

In order to succeed in business, it is important to have a sound business plan. Without proper planning, a business may fail and this is unfortunate. The utilization of tactical planning to compliment strategic goals, is a vital step towards success. It is particularly important for small business owners to establish tactical planning goals to [...]

The Disadvantages of a Sole Proprietorship

A sole proprietorship is one of the easier and most common forms to start a business. The only requirement of a sole proprietorship is registration as a business if any name other than the owners name is used for the business. The sole proprietorship is an extension of the business owner, not separate from it. [...]

A “short” Version Business Plan

When you started your business hopefully you wrote a business plan. If you did not, you can create a short version of a business plan now. While writing a business plan helps you prepare for the initial start-up phase and the first few years of operations at some point it becomes outdated. Many business owners [...]