Discover How Corporate Bonds Can Provide Cash Flow During Revenue Delays, and Explore How Royalties Can Tie Investor Returns to Your Sales Without Control.
Advice About Bonds and Royalties to Fund Business Growth Read More »
Network Deposits Involve Strategic Generosity. Providing Unsolicited Feel-Good Moments Compels Others to Want to Reciprocate Favorably in Many Ways.
What is the Balance of Your Network Deposits Account? Read More »
A person’s age and life-stage can help predict their purchasing decisions. There are a few more specific generational dynamics that can provide a clearer picture of their economic drivers
You Need To Know The Attitudes And Behaviors Of Your Target Demographic Read More »
Robert Kiyosaki, the author of “Rich Dad Poor Dad”, discussed the value the game Monopoly had in his education when he wrote that “You buy four green houses and trade them in for a red hotel.” The message here is that to have a successful business you don’t buy the red hotel right out of the gate. You build up your tacit business knowledge so that when you can afford the red hotel you are more likely to be successful.
Successful Business – Buy Four Green Houses Before You Buy a Red Hotel Read More »
The Small Business Administration (SBA) does not lend money, it simply acts as insurance for lenders, such as banks, with 3 loan programs
What You Need To Know About The Role Of The SBA Read More »
JP Morgan Was an International Financier and A Titan of Industry Whose History Contains Many Valuable Lessons for Small Business Owners.
7 Valuable Business Lessons from the International Financier JP Morgan Read More »
Cornelius Vanderbilt Was A Shipping Tycoon and A Titan of Industry Whose History Contains Many Valuable Lessons for Small Business Owners.
8 Valuable Business Lessons From The Shipping Tycoon Cornelius Vanderbilt Read More »
When a business approaches a lending institution about debt financing, the lender conducts an evaluation of the borrower using a method known as the 5 C’s of Credit
The 5 “C’s” of Credit Read More »
When considering key partners, you must consider the following questions: 1, Who are your key partners and who are your suppliers? 2, Which key resources are you acquiring from key partners and suppliers? 3, What key activities do your key partners and suppliers perform?
Key Partners and Your Business Model Read More »
What is operating leverage and why should you care? Ignoring the financial mumbo-jumbo, operating leverage represents how having debt can affect a company’s bottom line profit. In some cases, Operating leverage can improve a company’s profits and in others, it can destroy it.
Operating Leverage for Small Business: When You Should Use Read More »
Word-of-mouth marketing is not just making a good product or delivering a good service, and magically your clients will tell their friends how great you are, which will, in turn, lead to a greater number of sales. To achieve an epidemic you must employ some specific strategies.
How to Achieve a Word-of-Mouth Epidemic Read More »
Within the world of debt financing, there is a continuum, as different lenders have different appetites for risk and reward.
What You Need To Know About The Debt Continuum Read More »
Do you get calls from vendors nearly every day trying to pitch you on their products or services?
Self-Weeding Your Economic Garden Read More »
When entrepreneurs look at debt financing, their credit score (FICO) plays an important role in being able to get a loan. Essentially, a person’s credit score is computed on five dimensions, each with a different weight.
Why You Need To Understand Your Credit Score Read More »
Have you ever discovered something new and thought “What a great idea for a new business?” Often the signals you observed are only part of a short-lived fad.
How Responding to Popular Fads will Destroy a Business Read More »
Every day, entrepreneurs invest huge amounts of time and money to build a business that they think will be better than the competition. However, all too often entrepreneurs struggle to articulate how their value proposition is fundamentally different from their competition. These businesses are what I call clone businesses.
How to Transform your Clone Business and Stand Out Read More »
Conventional business advice is that in order to have a successful business you need to write a business plan. However, did you know that the simple act of writing a business plan can often lead your business to fail?
The Simple Truth Why Business Plans Cause Business Failures Read More »
Businesses have to make money and turn a profit to survive. While personal consumption can be influenced by personal ideals and values, in business, it is all about making a profit.
Are Your Personal Values Destroying Your Business? Read More »
The attributes that consumers have always associated with luxury items have changed in the last few years. The terms that business owners use to convey their value proposition also needs to change lest they miss out on this trend. In this post, I share a personal experience that has galvanized this lesson in my own thoughts.
A Relieving Look at How the Definition of Luxury has Changed Read More »
Every once in a while, a business comes along that creates a revolution in its industry that is so profound competitors have a hard time following suit. Southwest Airlines was one of these businesses. Today businesses can take some of the lessons from Southwest and apply them to their own industry to change their trajectory.
4 Amazingly Simple Lessons From Southwest Airlines Read More »
Conspicuous consumption is when someone spends money on goods or services in an effort to either convey a higher social status or invoke envy in others to gain their respect. Product badging is a way to draw attention to items that convey status. Yet, not all consumers want you to know the relative price of their products based on its badging.
The Secret to Product Badging Read More »
A franchise investment isn’t as high as most people think, especially when you put the investment cost into context and compare it with starting a business from scratch. There are eight factors that determine a franchise’s investment costs.
So Why Does a Franchise Cost So Much Anyway? Read More »
I believe there is a difference between taking advice from a serial starter vs a serial entrepreneur. A serial starter has played the game of business but not yet won. While a serial entrepreneurs in my definition, has not only played the game, but has also won the game by reaching either a natural conclusion to the business or achieved a profitable exit.
Serial Entrepreneur or Serial Starter? – That is the Question Read More »
Small business entrepreneurs never seem to lack vision, big ideas, or ambition! The vast majority of entrepreneurs I encounter in my practice believe they have a product or service that is so much better than what’s on the market already; they believe that if they can just roll it out, they will be able to
How Not to Strike Out in the Game of Business Read More »
There is a huge difference between consumer credit and business credit. Consumer credit funds consumptions while business credit is known as “leverage” and is applied to the purchase of an income-producing asset. As individuals, consumer credit is generally a method we use to obtain what we desire sooner than if we were forced to save
What You Think You Know about Credit Is Just Wrong Read More »
while the government may understand the importance of small business in the overall economy, its definition often differs from the way most entrepreneurs may define them. As a result, the methods in which the government can inject money are primarily limited to guaranteeing loans and creating projects for a narrow slice of the business community.
The Feeble Role of Government to Stimulate Small Business Read More »
Learn how savvy entrepreneurs recognize they may have a confirmation bias that can stifle their success and discover how to avoid them.
How Your Confirmation Bias Is Stifling Your Business Success Read More »
Several weeks ago, Sara Pope of ConsumerAffairs.com, reached out to me and asked if I could review a step-by-step guide to business loans and financing that her company had produced. My initial reaction was to just say no. My inclination to decline her offer was based on my experience with hundreds of nascent entrepreneurs. All too
A Step by Step Guide to Business Financing Read More »
Understanding monetary policy is critical to understanding why our lives are the way they are. Unfortunately, economics is often viewed by the vast majority of citizens with confusion and boredom. Financial jargon coupled with intimidating mathematics quickly deters people from any attempt at understanding it. That said, our established monetary system exists as one of
Our Fragile Monetary System Read More »
Innovations and manufacturing businesses have different planning requirements than the more common support and local service businesses.
Why The Business Planning Advice You Have Received Is Probably Stale Read More »
My advice to small business owners making sales calls is to use some type of icebreaker gift and share your story to make you stand out and be more memorable. Several years ago, a delegation from South Korea visited our company. At the time we were working with a publicly traded company whose product, floppy
Make Client Interactions Be More Memorable with This Technique Read More »
In the old days, companies would do extensive research to try to predict what the market would buy. Once they felt that they had a good idea about what would sell and how much of it they would need, they would build a product line to produce it and develop a strategy to deliver it.
Why Advertising Is Dying In the Long Tail Marketplace Read More »
My 89-year-old mother lives in an independent living facility that has several businesses connected to them. They have a bank, a maid service, and even a beauty parlor as my mom calls it. During a recent visit, my mom was telling me about how her hairdresser was let go because she was in such high
Are Your Employees Free-Agents? Read More »
Do you say “hello” and “goodbye” to your customers? Simply saying “hello” and “goodbye” can earn you healthy profits with almost zero investment. We have a local restaurant that I often go to for lunch where all the servers say “hello” as soon as you walk in the door. At my bank, they know me
The Value of Hello Read More »
Most people work from 9 to 5, Monday through Friday. It always perplexes me why some business to consumer (B2C) businesses are open during these same hours. How can they build their business when their customers are all trapped at work? It doesn’t make any sense! Increasingly, many successful business owners see the folly in
Hours of Operation Read More »
When it comes to selecting a location for a retail business, there’s a variety of criteria you should use, including: Many entrepreneurs have become bankrupt because they invested too heavily in a location that fell flat. Often, the location failed because other aspects of marketing were not properly attended to. If your location is hard
Choosing the Right Location for Your Retail Business Read More »
The SBA has it wrong. A business plan is not always what you need. Financial planning is advisable to the extent that you have access to enough money or capital to conduct your first few experiments. However, small business counselors, mentors, and the SBA often encourage ALL fledgling businesses to write a business plan. This
Forget Writing A Business Plan Read More »
In 1913, five investors each contributed $100 in cash to a new enterprise. Each also brought a special skill to the enterprise. There was a salesman, accountant, miner, banker, and lawyer. After forming the company, they raised $75,000, which is just shy of $2 million in today’s money. The founders hoped to create a super-concentrated
Is it Time to Bleach Your Business? Read More »
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. The EBITDA Appraisal Method attempts to remove all the factors that are viable from one owner to the next in privately held businesses. That said, the EBITDA Appraisal Method is most often used for public companies where their enterprise value can be computed.
EBITDA Appraisal Method Read More »
The inverse to why sellers sell a business is why buyers buy. Often a seller may only sell one business in a lifetime. However, buyers often buy several companies during their lifetime as they assemble pieces to help another business grow. Many buyers purchase a business to avoid the risk associated with start-ups and are
Why Buyers Buy a Business Read More »
So, you have a gem of an idea and want to get it off the ground. The first question is how much will it cost and can you come up with the money. We know that going to a lending institution like a bank to secure a business loan is an unlikely option and attracting
Crowdfunding: Process Overview Read More »
Take a look at the logos for Twitter, Facebook, and LinkedIn. Do you see a common thread? They all use blue as their primary color and that’s no coincidence. According to ColorMatters, 40% of people worldwide consider blue to be their favorite color. According to my daughter-in-law, if you’ve seen Chris Pine’s baby blue eyes,
What Color Are You? Read More »
Most banks say that they are small business lenders. The missing part of that statement is how banks define small businesses and what banks will lend money for. From the bank’s perspective, a small business is an established business and not a new business. Banks lend money primarily for tangible assets that double as collateral.
How to Argue for Seller Financing Read More »
When it comes to buying a business, size does matter. Most lifestyle or micro businesses have under 1 million in annual sales. When it comes to lifestyle and micro businesses, the owner is also the top manager. For valuation purposes, a good rule of thumb for a marketable lifestyle or micro business is that the
How to Value an Existing Lifestyle or Micro Business Read More »
The ancient Greek word for arrogance is hubris. For instance, anyone proud enough to challenge the gods would be burned to death. As surely as night follows day, destruction follows arrogance. Warfare is filled with examples of hubris that lead to a country’s destruction or at least inflicted heavy damage to their society. Napoleon in
The Turtle And The Hare Read More »
The type of customer relationship that is right for your business depends on your customer acquisition costs, customer retention goals, and need to up-sell the customer on an add-on or related products in the future.
Choosing a Customer Relationship Type Read More »
The first step for a new business or an existing business coming out with a new product line is to define the customer segment they are targeting. During the early stages of the process, I recommend starting out with a broad definition of the customer segment. The following is a list of five common customer
Choosing a Customer Segment Type Read More »
The federal government killed the Industrial Revolution by squelching successful entrepreneurs such as JP Morgan, JD Rockefeller and Andrew Carnegie and spinning a story for its own political gain
How to Stop the American Industrial Revolution Read More »
JD Rockefeller Was an Oil Magnate and A Titan of Industry Whose History Contains Many Valuable Lessons for Small Business Owners.
More Lessons from the Oil Magnate JD Rockefeller Read More »
This is part 2 in the series on Cornelius Vanderbilt. For the full text see Valuable Business Lessons From The Shipping Tycoon Cornelius Vanderbilt With the emerging Industrial Revolution, Vanderbilt saw that the railroad business was the future and would soon replace much of the ferry business. He began a campaign to take over the
More Lessons from the Railroad Titan Cornelius Vanderbilt Read More »
Many successful entrepreneurs know that being successful is not about academic education. Instead, they know that being successful is about focus and persistence. Many successful entrepreneurs are high school and college dropouts. They quit school because they didn’t see the purpose of what they were learning. Many school curriculums are too narrow or too broad
Is Academic Education Overrated? Read More »
Tandy Leather was a family owned business located in Texas. Dave Tandy was a partner in a leather heel and shoe repair business which was founded in 1919. Charles Tandy, the son of Dave, took over the business after World War II and changed the business’s focus to leather craft after seeing how leather crafts
4 Business Lessons from Charles Tandy – Not Enough White, Too Much Purple Read More »
John Johnson grew up in a small shack with a tin roof in rural Arkansas. In an effort to give John more opportunities, his family moved to Chicago when he was 15 years old.However, coming from a poor area in Arkansas, his new classmates made fun of his accent and handmade clothes. To deal with
A Lesson in Perseverance Read More »
Recessions and depressions cause citizens to demand action from the government, providing the spark and the fuel to drive bigger government. Take for instance the Great Depression, which started in October 1929 and lasted through most of the 1930s. In June 1928 the Federal Reserve thought that the booming stock market would cause inflation, so
The Answer is Always More Government Read More »
There is a bit of an injustice in the way entrepreneurs are told about the business planning process. First, new entrepreneurs are told that to get money from a bank they need a business plan. While there is some truth to this, a major missing piece is that they will likely not get any funds
Fishing and hunting have lessons for the business owner. Being a hunter and fisherman I often read articles about hunting and fishing strategies. I recently watched a documentary about the whitetail deer population in the US. In 1700 there were approximately one million whitetail deer living in the US. By contrast, today’s estimates exceed thirty
Fish Where the Fish Are Read More »
BANNERS – The other day I went to the bank and passed a car parked in a dirt lot next to the roadway selling bonsai trees. He displayed a banner that ran the full length of his car, attached by bungee cords, to alert people to the fact that he had something to sell. A
4 Marketing Ideas to Create Brand Awareness For Under $75 Read More »
Retirement accounts qualify for special tax treatment by the IRS. A common retirement account is a 401k, where pretax dollars from you, which are often matched by your employer, are deposited into an account and allowed to grow tax-deferred. These funds are designed to create income during retirement and are subject to premature distribution penalties
Using a 401k Loan to Fund Your Business Read More »
By transferring a traditional IRA into a self-directed IRA, the IRA owner can invest in private businesses and in real estate as well as traditional sources
Using a Self-Directed IRA to Fund Your Business Read More »
Many would-be entrepreneurs have money tied up in retirement plans like IRAs or 401ks that could be used to fund their businesses. Many simply believe they can’t access these funds until they reach the age of 59.5 without being subject to a premature distribution penalty. That being said, there are a few ways that you
Retirement Account Funds New Business Read More »
Often a company will spend months or even years developing a new product. The labor and material used to develop a new product or offering is considered Research and Development (R&D). R&D is often considered an expense to the company. Expenses are deducted from Revenue in the year they are incurred and help to reduce the
Should you Amortize or Expense your R&D? Read More »
A wise man once told me: “If you have a successful business, you will need more money.” He also said: “If you have an unsuccessful business, you will need more money.” The undisputed leading cause of business failure is that businesses just run out of money before they become profitable. Access to capital is, therefore, the
Do You Have Access To Capital? Read More »
A business associate of mine once used to charge $5,000 per day for his consulting services. I asked him once how he came to that rate and he said he heard someone was charging $4,000 per day and he wanted to be sure he was the most expensive option available. At the time he billed
Harness the Power of Expectations and Price Read More »
I often encounter businesses that at their core are pure services businesses, but which also sell products as part of their offerings. For example, consider a small part-time mobile oil change business. They are primarily in the service business of changing a person’s oil. However, their service includes the sale of motor oil. I’m often
Sales Tax Workarounds for Service Oriented Businesses Read More »
I’m often asked “Do I really need a business plan even if I don’t need a bank loan?” My response is sometimes“Yes” and some other times “No” One thing is for certain, it is not the destination that is important when it comes to writing a business plan, but the journey you take in writing
Do You Need a Business Plan? Read More »
Operating Leverage is just one part of your Economic Model. Simply put, operating leverage is the relationship between fixed costs and variable costs.
Understanding Operating Leverage Read More »
