Pricing is one of the most critical tasks that any successful business has to get right. Price your products and services too low and you won’t earn a high enough margin to meet your expenses and earn a profit. Price them too high and you might not sell enough...
“We’ve always done it that way.” These may be the most dangerous six words in the English language. Los Angeles and Southern California small businesses that don’t adapt to change could eventually end up being the 21st century equivalent of the buggy manufacturer who in the early 20th century...
Most Los Angeles and Southern California business owners and entrepreneurs are familiar with the 80/20 rule. Also known as the Pareto principle, this rule states that for many events, 80 percent of the results come from 20 percent of the participants. This principle was originally identified by Vilfredo Pareto...
Choosing the right discounting strategies is one of the biggest ongoing challenges for Los Angeles and Southern California business owners and entrepreneurs. This is true for both manufacturers of products and providers of professional services. Many CEOs, CFOs and controllers find themselves constantly evaluating and re-evaluating different discounting models and...
Most Los Angeles and Southern California business owners and entrepreneurs start their businesses as sole practitioners, or perhaps two or three individuals starting a partnership. During these early stages of the company’s development, proper infrastructure might not be too important — things are less formal and the owner or...
The main reason most Los Angeles and Southern California business owners and entrepreneurs launch their companies is to earn a profit. Given this, it’s surprising how many of these owners and entrepreneurs do not know how to accurately determine whether or not their businesses are profitable. You might be working...
“Cash is king!” says the old business axiom. And yes, cash flow is critical to the successful operation of any company. Without cash on hand, your business can’t pay overhead and vendors, buy raw materials, meet payroll, or do pretty much anything. But let’s face it: Most greater Los...
While recent data indicates that the economy is growing, albeit very slowly, many Los Angeles and Southern California businesses are still navigating rough waters. This is especially true for businesses that suffered disproportionately to other businesses during the downturn, or those whose product lines are in an industry niche...
The first of Sir Isaac Newton’s three laws of motion states that “every object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it.” The opposite also holds true: Objects in a state of rest tend to...
Owners of small and mid-sized businesses in Los Angeles and Southern California face many proverbial forks in the road throughout the lives of their companies. One of these is the decision about whether they should hire a full-time chief financial officer and, if so, when is the right time...