Show Me the Money

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When you talk about your business with someone that might have an interest in loaning you money, or joining you as a partner, or buying the business, they will want to see the Cash Flow Statement. Continue reading

A Short Course in Numbers

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John McCarthy, computer and cognitive scientist who coined the term “artificial intelligence” stated…”he who refuses to do arithmetic is doomed to talk nonsense.”

In the next few newsletters I hope to help you through some of the numbers of business.  Recently I wrote about KPIs, Key Performance Indicators.  Many of the KPIs in business take at least a basic understanding of a few mathematical concepts.  In this article I’d like to introduce or reintroduce you to Ratio.  Don’t run – stick with me – it will be painless, I promise, and if you need more help, just call for an appointment to work on the numbers for your business. Continue reading

Key Performance Indicators

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There is a primary problem with measurement.  You can measure a million different things.  Measure too much and you’ll drown in a sea of meaningless data.

Some measurements are more important than others.  Key Performance Indicators (KPIs) are measurements of the critical parts of a system.  Measurements that don’t help you make improvements to your system are worse than worthless:  they’re a waste of your limited attention and energy.  You don’t have time to pay attention to everything – just a few key measurements that actually matter. Continue reading