Right People, Right Seats (Part 2) Systems and processes are a beautiful thing when executed properly. Today, we're covering an ops playbook for managing your team. I'll credit Jim Collins in Good to Great for the "right people, right seats" concept and Gino Wickman in Traction for the accountability chart tool. A quick overview of each: Right people, right seats — Concept of having the right person with requisite skills sitting in the seat (job) which requires those skills. Think of this as...
21 days ago • 3 min read
Right People, Right Seats (Part 1) Most companies have 3 “senior leadership” seats with different roles to play. These are usually known as your management team: CEO — sets strategy, creates culture, responsible for allocating capital and resources to maximize value CFO — translates vision into reality via financial ops and financial strategy (don’t confuse with your bookkeeper or CPA) COO — execution and tactics are at the center here… day-to-day operations keep the trains running on time,...
28 days ago • 3 min read
Where do I start? Let's say you're running a business and have a pretty good handle on: Managing the day-to-day Dealing with the team Talking to customers Finding suppliers But when you open up the bank account or QuickBooks? Stopped dead in your tracks. I was there too at one point. Below, I'll share a 7-point list of where you should start on your financial journey (whether 1st inning or 8th inning). First, a quick story... I have a masters in accounting, I'm a licensed CPA, a CFA...
about 1 month ago • 3 min read
Going Viral Want cheaper customer acquisition costs and higher lifetime value from your customers? Here are 2 levers (and playbooks) for achieving just that. Today, we'll look at 2 sides of viral marketing, the customer review and the referral. But first, if you're happy with our courses, content, and services; then take a moment to leave us a quick review :) Leave us a review! First, what's viral marketing? Going "viral" isn't just for social media platforms. It's having a product or service...
about 1 month ago • 3 min read
Looking at Labor Dollars Some common things I've heard when it comes to managing the financial side of labor costs: Our team is highly efficient That person isn't fully utilized yet We're adding headcount at a very fast pace This technology will reduce our staffing needs We have a productivity issue in that department Most of these are anecdotes, and that's how I see most companies running their business from a labor cost standpoint. We're hosting a webinar for members next week covering...
about 2 months ago • 3 min read
Pricing Power What comes to mind when you hear the phrase: "raise your prices"? Pricing will always be the fastest path to profitability. Full stop. The trick is getting it right. Before we unpack what goes into it, let me share this Charlie Munger quote on the concept of "pricing power" in business. Buffett and Munger spent their careers searching for businesses with a "moat" (competitive advantages + long-term pricing power). And they had a unique ability to look out 5-10 years ahead to...
about 2 months ago • 3 min read
Business is war (usually) It was a perfect storm. Payroll and loan payments were set to hit on the same day. And the largest vendor was demanding payment for some stale invoices. Oh, and your best customer was dragging their feet on a (very late) invoice. Business owners are battling every single day. Whether it's: Trying to win new business or grow sales Dealing with difficult employee situations Taking calls from suppliers who wanted to get paid yesterday Making sure there's enough cash in...
2 months ago • 4 min read
What's your neighbor up to? Wouldn't it be helpful to know the financial performance of other businesses with your exact same business model? It's a surefire way to see if you're leaving money on the table. “I believe in the discipline of mastering the best that other people have ever figured out.” — Charlie Munger What is benchmarking? After completing a financial review, we can take those findings and compare them. There are several useful comparisons when benchmarking financials: We can...
2 months ago • 3 min read
Defining Your Business Before digging into the financial plumbing of a new business, client, or acquisition, I like to level-set on where the business stands: Debt levels Growth rate Years established Current profitability & cash flow We don't need to do any deep analysis to answer these questions. "Do you have debt? Yes! I have a big bank loan." Today, we'll look at a few business situations to help chart the course for regular financial planning & analysis. "Every hand’s a winner, and every...
3 months ago • 3 min read