Labor costs continue to be the largest fixed expense for many small and midsized businesses. Government-imposed wage hikes in the form of higher minimum wages that have been implemented in some areas and are being discussed on a national level certainly aren’t going to help. In this environment, businesses should be...
In our recent article – Does Your Business Do Strategic Planning? – we discussed the importance of strategic business planning. In particular, we talked about the difference between having a strategic plan “in your head” and engaging in true strategic planning. By going through the formal process of strategic...
Most small and mid-sized business owners associate the financial disciplines of forecasting and budgeting with the profit and loss statement (or P&L). In addition to the P&L, forecasting cash flow is vital, and including a balance sheet makes the projection complete. This exercise is essential for any business that wishes...
The do-it-yourself (or DIY) craze has become very popular among many people. Whether it’s tackling home repairs and renovations or working on cars, some folks today have decided they’d rather do things like this themselves than hire someone else to do them. Some people want to save money while...
Budgeting is one of the most important financial tasks performed by small and middle-market business owners and their controller or CFO. The budget sets the financial blueprint for a business, letting managers and other decision makers know how much money will be available to them to meet their departments’...
When planning to relocate or expand their business, owners and CEOs look at a variety of different factors that will impact the cost of the relocation or expansion. These include such factors as infrastructure, raw materials, equipment, skilled labor, land costs, utilities and site improvements. One important expansion or relocation cost...
If you ask them whether or not they do strategic business planning, most business owners and CEOs will say, “Yes, of course!” But then if you ask them to describe their strategic planning process to you, the majority will probably stammer for a few seconds and then say something...
In recent years, more mid-sized businesses have begun to outsource some of their functions to consultants, freelancers and third-party service providers instead of handling the work in-house. There are many potential benefits to outsourcing some functions instead of having current employees perform them or hiring new employees to do...
When seeking to borrow money, raise equity capital, make an acquisition or enter into a joint venture, owners of small and mid-sized businesses often face unexpected hurdles due to the fact that they haven’t kept their business and financial house in order. I have encountered a number of situations...
In a recent article, we discussed the fact that it’s now essential that the finance function apply digital technology in order to properly serve the constituents of any organization. The current reality is that the operating model of the modern finance department will continue to evolve by automating non-value...