| |
| |
Introduction | |
| |
| |
| |
Refresher: Balance Sheet, Income Statement, and Cash Flow Statement | |
| |
| |
The Balance Sheet | |
| |
| |
The Income Statement | |
| |
| |
The Cash Flow Statement | |
| |
| |
Chapter Summary | |
| |
| |
| |
Basic Budgeting | |
| |
| |
The Monthly Budget Report | |
| |
| |
Where Do the Numbers Come From? | |
| |
| |
Revenues | |
| |
| |
Expenses | |
| |
| |
Chapter Summary | |
| |
| |
| |
Variable versus Fixed Costs: Why You Need to Know the Difference | |
| |
| |
Fixed Versus Variable Expenses | |
| |
| |
Variable expenses | |
| |
| |
Fixed expenses | |
| |
| |
Why is Cost Behavior Important to My Business? | |
| |
| |
Break-even point | |
| |
| |
Capacity | |
| |
| |
Chapter Summary | |
| |
| |
| |
Ratio Analysis for Fun and Profit | |
| |
| |
The Basic Ratios and What They Tell You | |
| |
| |
Solvency or liquidity ratios | |
| |
| |
Asset and debt management ratios | |
| |
| |
Profitability ratios | |
| |
| |
Which Ratios Should My Business Track? | |
| |
| |
When Good Ratios Go Bad: What to Do When There's a Problem | |
| |
| |
Chapter Summary | |
| |
| |
| |
Understanding the Operating Cycle | |
| |
| |
The Operating Cycle | |
| |
| |
The operating cycle timeline | |
| |
| |
The Cash Flow Report | |
| |
| |
Revenues | |
| |
| |
Expenses | |
| |
| |
Bringing it all together | |
| |
| |
Chapter Summary | |
| |
| |
| |
Pricing Your Product or Service | |
| |
| |
Cost-Plus Pricing | |
| |
| |
Value Pricing | |
| |
| |
Competitive Pricing | |
| |
| |
Consumer Demand | |
| |
| |
Other Pricing Considerations | |
| |
| |
Pricing services | |
| |
| |
Penetration pricing | |
| |
| |
Pricing below your competition | |
| |
| |
Psychological pricing | |
| |
| |
Discount pricing | |
| |
| |
Chapter Summary | |
| |
| |
| |
Key Performance Indicators: Your Keys to Success | |
| |
| |
How Do I Figure Out What My CSFs Are? | |
| |
| |
How can I measure my CSFs? | |
| |
| |
What Happens When My Key Performance Indicators Start to Slide? | |
| |
| |
Chapter Summary | |
| |
| |
| |
Getting a Grip on Your Inventory | |
| |
| |
Types of Inventory | |
| |
| |
Retailers | |
| |
| |
Manufacturers | |
| |
| |
Service business | |
| |
| |
What's Included in the Inventory Costs? | |
| |
| |
Inventory Management Techniques | |
| |
| |
Manual tracking | |
| |
| |
The ABC management system | |
| |
| |
Economic order quantity (EOQ) model | |
| |
| |
Chapter Summary | |
| |
| |
| |
Accounts Receivable: The Money Coming In | |
| |
| |
The Sales Cycle Revisited | |
| |
| |
Setting Up Your Credit Policy | |
| |
| |
Terms of sale | |
| |
| |
Credit decisions | |
| |
| |
Collection policies | |
| |
| |
Factoring Receivables | |
| |
| |
Should I Hire a Collection Agency? | |
| |
| |
Monitoring Your Receivables | |
| |
| |
Chapter Summary | |
| |
| |
| |
Accounts Payable: The Money Going Out | |
| |
| |
Supplier Financing | |
| |
| |
Tracking Due Dates | |
| |
| |
What Happens If I Fall Behind? | |
| |
| |
Chapter Summary | |
| |
| |
| |
Buying New Things: Are They Going to Pay for Themselves? | |
| |
| |
Projected Benefits | |
| |
| |
Discounted Cash Flows | |
| |
| |
Payback | |
| |
| |
Benchmarking | |
| |
| |
The Scarcity of Resources (or "There's Only So Much Cash") | |
| |
| |
Chapter Summary | |
| |
| |
| |
What's Not Showing on Your Financial Statements | |
| |
| |
The Six Big Risks | |
| |
| |
Operating lease obligations | |
| |
| |
Lack of adequate insurance | |
| |
| |
Personal guarantees | |
| |
| |
Economic dependence | |
| |
| |
Foreign exchange exposure | |
| |
| |
Interest rate exposure | |
| |
| |
Risk Management for Entrepreneurs | |
| |
| |
Chapter Summary | |
| |
| |
| |
Investor and Manager: The Split Personality of the Small Business Owner | |
| |
| |
The Small Business Manager | |
| |
| |
The Small Business Investor | |
| |
| |
Chapter Summary | |
| |
| |
| |
Growing Your Business | |
| |
| |
The Three Methods of Business Growth | |
| |
| |
Leverage | |
| |
| |
Attract New Customers | |
| |
| |
Sell Them More | |
| |
| |
Sell to Them More Often | |
| |
| |
Tracking Your Business Growth | |
| |
| |
Chapter Summary | |
| |
| |
| |
Facing the Scary, Two-Headed Banker Monster | |
| |
| |
Lending Money 101 | |
| |
| |
Getting to Know and Love Your Banker | |
| |
| |
The Lending Proposal | |
| |
| |
The Care and Feeding of Your Banker | |
| |
| |
Other Dance Partners | |
| |
| |
Your Credit Score | |
| |
| |
Chapter Summary | |
| |
| |
| |
Managing Debt | |
| |
| |
Understanding Debt Service | |
| |
| |
Debt service ratio | |
| |
| |
Payback | |
| |
| |
How Do I Calculate My Cost of Borrowing? | |
| |
| |
Bank loans | |
| |
| |
Lines of credit | |
| |
| |
Credit Cards | |
| |
| |
Capital leases | |
| |
| |
Suppliers | |
| |
| |
The government | |
| |
| |
The Danger of Leverage | |
| |
| |
The Debt Diet Plan | |
| |
| |
Analyze | |
| |
| |
Project | |
| |
| |
Act | |
| |
| |
Chapter Summary | |
| |
| |
| |
Compensating Employees | |
| |
| |
What Are Your Employees Worth to You? | |
| |
| |
Office Assistant | |
| |
| |
What Are Your Employees Worth to Someone Else? | |
| |
| |
Benefits | |
| |
| |
Sick Days | |
| |
| |
Performance-Based Compensation: Paying for Value | |
| |
| |
The Performance Evaluation Process | |
| |
| |
Keeping Tabs on Employee Performance | |
| |
| |
Chapter Summary | |
| |
| |
| |
Pulling It All Together: The Planning Cycle | |
| |
| |
The Planning Cycle | |
| |
| |
Planning | |
| |
| |
Control | |
| |
| |
The flash report | |
| |
| |
The monthly management operating plan | |
| |
| |
Growth | |
| |
| |
Fine Tuning | |
| |
| |
Planning | |
| |
| |
Chapter Summary | |
| |
| |
| |
The Monthly Management Operating Plan | |
| |
| |
| |
Present Value of $1 | |
| |
| |
| |
Resources for the Growing Business | |
| |
| |
Glossary | |
| |
| |
Samples | |
| |
| |
| |
Typical Balance Sheet | |
| |
| |
| |
Income Statement | |
| |
| |
| |
Cash Flow Statement | |
| |
| |
| |
Monthly Budget Report | |
| |
| |
| |
Cash Flow Projection | |
| |
| |
| |
Inventory Tracking Sheet | |
| |
| |
| |
Aged Accounts Receivables Report | |
| |
| |
| |
Quarterly Performance Review | |
| |
| |
Diagrams | |
| |
| |
| |
The Operating Cycle | |
| |
| |
| |
ABC Tracking Method | |
| |
| |
| |
EOQ Model of Inventory Management | |
| |
| |
Tables | |
| |
| |
| |
A Quick Reference to Ratios | |
| |
| |
Worksheets | |
| |
| |
| |
Business Risk Profile | |