Accounting has been called the language of business. If you’re like most business owners though, you’ve probably wanted to learn as little as possible about this language. In my experience however, I’ve seen a high correlation between an owner having a basic knowledge of financial statements and operating a successful business. Remember, one doesn’t have to be fluent in a language in order to communicate. A few years ago a friend traveled to France and Italy and didn’t think it was necessary to learn a few phrases in these languages. After the trip though, he said that knowing how to say a few simple words such as “where’s the bathroom?” or “I want a beer” would have avoided a couple of minor emergencies and scored points with the locals. Likewise, learning a few key financial terms and ratios allows management to review past results and take corrective action as necessary. As one of my supervisors always used to say: ”you can’t manage what you can’t measure”. Continue reading “Do you Speak the Language of Business?” →

Ever walked in shoes that were too big?  If you have, you know that it slows you down, makes you look clumsy, and can even make you stumble.  When looking to deal with a vendor for a specific purchasing need that will involve more than 50% of your business (i.e. a supplier you would buy your day to day materials from), you MUST find a company and a sales rep that is tailored to handling your volume of business.  Too often, contractors look to buy from the biggest, nicest, most reputable dealer in town.  At face value, all of those characteristics are desirable and important but this dealer might not fit your specific needs.  When looking to partner up with a vendor for the best possible pricing and customer service, ask yourself the following questions: Continue reading “Don’t Walk In Big Shoes” →