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 […]
