In his classic story, A Christmas Carol, Charles Dickens wrote: “I will honor Christmas in my heart, and try to keep it all the year. I will live in the Past, the Present, and the Future. The Spirits of all Three shall strive within me.”
Christmas is such a wonderful time filled with beautiful memories of the past, meaningful moments to appreciate in the present, and a look to the future with wide-eyed high expectations. It’s an ideal time to also bring that same optimistic perspective to our businesses. It’s a time for us to be our best selves.
My idea of Christmas may seem old fashioned, but I see it as a time to really focus on caring for each other. At Eagle Corporate Advisors, we accompany you in “Your Journey to Performing Higher” and in caring for your family, your employees, your customers, and your business. This Christmas, I am grateful for being able to do just that. Thank you for giving me the chance to be part of your journey through our business dealings, collaborations, conversations, and friendship.
I wish nothing but true joy and happiness along with prosperity for you, your family, and loved ones on your path to success, both financial as well as personal. Here’s to looking back at your accomplishments and looking forward to your opportunities.
Fundamentals: Financial – Part 3
“The longer I go on, the more I am aware of the power of finance.”
– Justin Welby
This is the third and final installment of our series discussing the financial fundamentals impacting the health of your business.
Gross profit is a term commonly used to evaluate a company’s financial health. It measures the amount of money left over from revenues after subtracting what it cost to create the product (called cost of goods sold). Far too often, businesses do not pay enough attention to the gross profit. The erosion of your gross profit margin can create critical concerns in many areas of your business.
Signs that a company is in financial trouble may include lower liquidity, reduced cash flow, disappearing profit margins, too much debt, slow paying customers, loss of major customers, overdrafts, high-interest loans, layoffs, and many more. Inversely, on a positive note, incremental improvements can be achieved by monitoring your financial and non-financial benchmarks and adjusting your activities accordingly.
Regardless of your trends in one or more of these areas, an honest, objective assessment of your management team, your operations, and the reasons for the company’s existence should be completed to ensure you are achieving your financial goals. Taking the time to reassess strategic positions and business plans, including the capital structure, is wise with the ever-changing business environment and economy. Failure to do so could accelerate a potential crisis or other extreme measures.
With more discussions of economic uncertainty building, now is the time to prepare. Although every business or crisis is unique, all should have a common strategy rooted in full transparency and open communication with key stakeholders, both early and often.
“Sing like no one’s listening, love like you’ve never been hurt, dance like nobody’s watching, and live like its heaven on earth.” – Mark Twain
“Sometimes in life we tend to look at those around us and admire their successes and reflect on their failures, or what we think about our successes or failures, from the outside instead of enjoying and admiring our own road to the success and opportunity we are given. I get up every morning, put on my work boots and commit to focusing on and enjoying the opportunities of my own personal journey.” – Brian Nielson, COO of NDX, LLC
Business owners often feel as though they have no one to talk to, no one who really understands the frustrations and loneliness of entrepreneurship, not to mention the occasional sleepless night. They find it difficult to truly open up and share everything with employees, friends, family, or even business partners, who may mean well, yet don’t have the experience, ability, or objectivity to provide meaningful support and direction.
It’s as though the business owner is sitting at his or her desk, with piles of obligations and concerns, while across the desk sits an empty chair.
Chuck Mohler often walks in and claims the previously empty seat as the best person to fill the void. Chuck uses his 25+ years of experience in business and his multiple professional certifications to guide owners, after careful listening, with sound advice and action. In his role as a qualified, trusted advisor, coach and mentor, he shares hard-won lessons, addresses specific challenges and helps implement vital systems and processes, all while lending an empathetic ear. Or, sometimes, a needed kick in the pants.