How can business owners leverage data that is already being collected to help them become more proactive decision makers? Find out with our most recent blog post!
If after careful planning, your spreadsheets and forecasts are irrelevant after the first month- this blog post can help you understand when to appropriately use probability to avoid this miscalculation in the future.
We, as humans, have needs that change as we grow. Abraham Maslow named and organized these needs in his 1943 paper “A Theory of Human Motivation.” He arranged them in pyramid form with the most fundamental needs at the bottom. He understood the human brain to be a complicated organ which could shift in between needs as they became available and unavailable. For instance, one would not worry about esteem if they are starving since physiological needs were more fundamental to well-being than esteem. However, once one need became well fed, they were ready to ascend the pyramid.
Just like human needs change, as a business grows, matures, and becomes more sophisticated their needs also change. Therefore, I would like to propose a few thoughts on the hierarchy of business needs. As listed in the illustration in this blog post, I have arranged each need for business management with the most fundamental at the bottom of the pyramid.
CPAs should be bloodhounds for their clients. Just like bloodhounds can track their target for miles, accountants have a nose on them that allows them to sniff out profits from a mile away.
A business' activities need to be in line with their goal in all three areas: sales, operations, and administration. When the activities don't match the company goal, and move the company forward we call this ineffectiveness. If your business is transacting activities in line with your company goals but could do so in a more practical fashion, then we call this inefficiency. Don't confuse the two, treating ineffectiveness as inefficiency will destroy your business.
A narrative is a series of events, fact or fiction. In my observations, it is one of the most powerful motivators. If someone sees themselves inside a narrative it can empower them to rise to a challenge, be a villain, or join a cult. Narratives are powerful and dangerous.
Financial forecasting provides us with an additional level of certainty, although not absolute, to make decisions. It’s about spending time today, to help us improve the future outcome.
Improvement in your business is an investment you make. And just like any other investment you make, it should be based on empirical information, carefully thought out, and timely. One way to achieve each of these dynamics of improvement is by practicing continuous improvement within your enterprise.
Richard Branson said “Never take your eyes off the cashflow because it’s the life blood of business." Check out this blog post to see why following your cash flow is so important.
Many of the most successful companies employ a 3 step process to change behaviors that increase company growth. Find out how you can replicate this model in your own business!