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Quick quiz
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Each month I'll give you a new question.
Just reply to this email for the answer.
Who was the cha-cha champion of Hong Kong in 1958? |
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Details to Examine in Partnership Financial Statements
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The best partners in a business, like ingredients in a good meal, complement each other. They are not identical, but they are not entirely opposite, either. Your business partner should bring elements to the partnership that offset your weaknesses. Going into business with someone is a big commitment. Taking it seriously means carefully reflecting on what each person contributes to the partnership.
Great partnerships are forged, for example, when one person is effective at sales while another individual focuses on production and managing the finances. In addition, certain similarities are necessary to enjoy advantages from having a business partner. Most crucial among these is that successful partners communicate clearly about goals and working toward the common achievement of them.
The indispensable tool for evaluating a joint effort by partners on a growth trajectory is an accurate accounting of business results. Financial statements must be understood together by the partners. Among the areas to examine are the capital contributions and draws of each partner. In general, these should be proportional to ownership percentages. Partners will also compare the business income to hours worked by each of them. These should be in accordance with the design when the partnership was formed.
Both partners should have assurance from the business's financial statements that profitability is unfolding as planned. Even more important is identifying areas for improvement when profits are disappointing. This triggers a renewed focus on either sales or cost controls. Action is usually necessary on both fronts, which means a coordinated effort by the partners. |
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How to Win Big in Today's Economy
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The altered economic landscape presents innovative and nimble businesses
with opportunities to thrive.
Find out how by requesting my free
report "How to Win Big in Today's
Economy" by replying to this email.
Just reply to this email and I'll send it right out to you.
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Navigating Change in 90 Seconds: Is It Possible? |
Stoic philosopher Marcus Aurelius once said, "You have power over your mind, not outside events. Realize this and you will find strength."
Neuroanatomist Jill Bolte Taylor can attest to this. A pioneer in the science behind creating inner calm, her research has found that when you respond to a stressful trigger event, chemicals race through the body that put your body on high alert. But it only takes 90 seconds for those chemicals to flush out. Any remaining inner strain is because of an active decision to stay in the emotional response loop, not because you are still biologically reacting.
Why not test out the theory the next time a stressful trigger event occurs? Observe your emotional response for roughly two minutes, even naming the emotions as they arise. In taking the time to identify the pain, anger, anxiety or fear you feel, you give your body a pause during the fight-or-flight instinct. This is similar to the meditative practice of allowing thoughts to pass and not allowing them to derail your cool.
When it comes to navigating the demands and pressures of a workplace environment, Bolte Taylor's 90-second trick could certainly come in handy. For example, if your best salesperson resigns, you may feel an immediate hit of adrenaline in response. Instead of floundering in disappointment, allow your body to feel it and let it pass. Thereafter make a choice to move forward with composure and compassion, asking yourself how you can intentionally learn from this setback in order to move forward having gained valuable insight.
Navigating change in 90 seconds is indeed possible. Change will happen. What's important is the story you tell yourself once it does. Be prepared and know how to process it, and you'll see positive results in your business. |
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Worth Reading |
25 Best
Practices
for Surveys
By Annie Pilon
Small Business Trends |
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Surveys provide valuable insights into the health of your business, both externally and internally, and can gift you actionable data to move with precision, clarity and confidence. This article highlights core elements for creating an effective survey, from focusing your objective to analyzing the results. Here are the best practices to obtain maximum engagement and honest feedback. |
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11 Ways to Refresh Your Company's Image without
a Full Rebrand
By Forbes Agency Council
Forbes |
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The evolution of a company's product and service offerings, overall positioning and advantages within the competitive landscape will change over time. Discover how to redefine customers' perceptions and drive awareness of expanded capabilities without changing the core of who you are. Here are tried-and-true methods to gently shift and realign your brand image. |
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6 Tips to Get the Most Out of Your LinkedIn Profile |
Making use of all LinkedIn can provide is the ultimate test of social and networking skills. Here are top tips to not just build a strong network but to become an all-star.
Focus on profile strength. According to LinkedIn, completing each section helps you rank higher in search results and become 40% more likely to have potential jobs, clients and contacts reach out to you directly.
Seek out groups similar to your industry or interests. Become a positive addition by participating in conversations, furthering your expertise and contributing relevant content. Create the value for people to interact with you. This is where your reputation begins to sell itself.
Don't be afraid to connect. The perfect time to add a connection is after a positive interaction in a group discussion or initial meeting. Steer away from
"spamming" invitations or leading with a sales pitch. A personal touch is a must!
Empower people to get in touch. Consider stating your preferred contact methods if you are open to people contacting you with opportunities.
Reciprocal relationships. One of the fastest ways to build respect and rapport is by helping and connecting others. Having an equal give and take in your online interactions is imperative to building a strong social network.
Keep relevant. Keep in touch. Take two minutes per day to check in with a few contacts. The most common mistake made is "connecting and forgetting." Send a message, congratulate on promotions, like posted content or schedule a virtual lunch or coffee meeting with remote connections. |
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Share This Newsletter
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If you find this newsletter helpful or interesting, share it with those you care about.
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Links You Can Use - Streamlining |
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Making efficient use of time, keeping organized and automating simple tasks are key for managing all the various aspects of keeping a business running while you also continue to focus on growth. Here are some ways to streamline your operations so that you can cut the frills and get back to focusing on the meat and potatoes of your core business: |
How to Identify
Repetitive Tasks
in Your Business |
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Start with a few exercises to identify repetitive and redundant activities that should be better streamlined.
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5 Ways Digital Expense Management Benefits
Small Business |
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Cut down on time-consuming tasks, such as filing and processing expense reports, with a digital expense management system.
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4 Tips for
Streamlining Your
Email Campaigns |
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Take the "copy and paste" out of your daily marketing activities with scalable, effective automated email campaigns.
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10 Small Business Functions That Can Be Easily Outsourced |
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Outsource non-revenue-generating yet essential business activities so that you can keep focused on growing your business.
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Using Accounting Details to Develop Pricing Strategy
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An early decision in the development of a business is determining how to price what's being sold. The right price assures profit. A price that's too high could cause consumer demand to evaporate. A price that's too low will leave you bankrupt from expenses exceeding revenue.
Price Accounting
Settling on an optimal price is the by-product of an accounting process rather than a guessing game. The exercise begins with a general operating budget. Assess your productive resources. This includes time because you can only work a limited number of hours per month. Determine how much can be produced with the given amount of time, personnel and equipment at your disposal.
Next, identify the average monthly costs for these resources. Some expenses are fixed, such as rent, Internet service and telephone charges. Other costs are variable, such as outside contractors and owner compensation. For these, assume maximum cash outflow when the business is operating at full capacity.
The sum of all ongoing expenses shows how much income is needed to break even. The last step is identifying a break-even price for your production output. If your business provides a service, for example, the price for a month-long project must cover one month of costs. A business that makes a product determines break-even price by dividing the number of units that can be made in a month into the monthly costs.
Price Strategy
Knowing a break-even price is only a starting point. A small business typically tests various pricing strategies. This may entail charging a break-even price based on less than maximum output to gain a profit later when volume rises. A common pricing strategy is simply calculating all expenses and adding some profit. Then determine a price by dividing that figure by production output, whether that's a typical project, a product or an hourly rate.
Of course, if you sell a common commodity or branded goods, your price is largely determined by the competition. This demand for competitive pricing means going back to your costs for assurance that profitability is viable based on market price. On the other hand, if your business can distinguish itself from competitors, careful price planning yields profit opportunities. This situation permits your enterprise to charge higher prices for greater quality even if it has a lower quantity of output.
Selling multiple types of services or products can complicate pricing strategy. If you want to explore item-specific pricing, you're tasked with determining the costs for each thing your business sells. This means knowing the direct costs of providing each sale item plus allocating fixed costs among the various sales categories.
In most of the cases, however, a small business simply identifies an average price per product or service. Some things may sell for a higher price than their costs while others sell for slightly less than their costs. Nevertheless, identifying an average price for somewhat similar items or projects greatly simplifies pricing strategy analysis. The goal, of course, is for the average price of each thing sold multiplied by the number of sales in a period to cover costs for the period and provide some profit.
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This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter. |
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