GROW YOUR BUSINESS BY 30,40 OR 50% WITHOUT
CAPITAL INVESTMENT?
Do you want to grow your business without any capital investment?

I frequently meet business owners that say they want to grow their business. The main reason they often want to do so, is that they are not making enough money.

But few will actually do anything about it. Most will continue to do the same things over and over and expect different results. We all know how that plays out and the definition of doing so. Many business owners can’t seem to break out of their comfort zone and they keep thinking it will get better. Maybe if I work even harder it will get better, if I try this new X, it will get better, but then it doesn’t.

We have to get out of our comfort zone and that takes making changes. And like most people, businesses often don’t change until the pain to remain the same is greater than the pain to change. It often takes a crisis to get individuals and businesses to change.

Are you going to wait for a crisis before you take action to change your business for the better? Are you going to wait until the wheels start to come off before you take the steps necessary to change your business or are you going to make a significant difference and grow your business by 30, 40, or even 50% without additional capital investment. Want to learn how?

It takes courage to ask for help. Do you want to make more money, have less stress and more free time? Hire a coach/consultant to help you. Only the best people have coaches. Only the best bother to get coached. Why shouldn’t you?

Find out how we are able to make dramatic improvements in our client’s success from 30% to 420% without any capital investment. Have the courage to give us a call. 503-312-3145

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Several news outlets, including the Wall Street Journal on Tuesday April 21st, have reported about the aid businesses received under the federal government’s Paycheck Protection Program (PPP) and the fact that many of the businesses that received aid were not the ones with the greatest need.

It looks as if receiving PPP was heavily influenced by how and where companies banked. Many of the companies who received funding from the PPP already had loans with the bank they applied through. The Wall Street Journal states; “thousands more that lacked the right ties, weren’t approved.”

In my book Make Your Banker Happy, available on Amazon, I describe how essential your banker is to your success because business doesn’t always go as planned. It pays to establish a relationship with your banker in good times because when bad times come (as they always do), you will have that trusting relationship in place. The current situation with companies applying for PPP funding is a perfect example.

Your banker should be an important partner in your business, but that relationship requires an effort on your part. Owners of small and midsize businesses who invested in that relationship are seeing the payoff now.

If you are experiencing difficulty in your business, this is a great time to look at the big picture and uncover what has been working well and what has not been. From there we can unlock ways to make your business more efficient and effective.

Give me a call. I am an expert in business process improvement and can help you increase top-line revenue and bottom-line profit: 503-312-3145

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Many businesses are currently struggling to survive as a result of the pandemic. Often there are many reasons for this condition but one of the most important is the lack of adequate cash flow. Without cash your business is destined to struggle and eventually die.

There are only four ways to get cash in your business.

1. Cash from sales
2. Cash from borrowing
3. Cash from investment
4. Cash from the sales of assets

The best way to sustain your business is to generate cash from sales because eventually you will run out of both investment cash and your ability to borrow. Furthermore, cash from borrowing and sometimes investment will create a debt on your balance sheet, and the repayment of the interest and principal on the loan or investment is a use of cash that will reduce your available cash for operations.

Want to improve your cash flow and go from surviving to thriving in your business? Give us a call and learn how we have helped companies improve cash flow up to 855% in less than a year and during a pandemic. The call is free, and you will come away with something of value to help you in your business.   503-312-3145

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We have all heard that “cash is king.” The origin is unclear, but it has been attributed to Pehr Gyllenhammar after the global stock market crash in 1987. At that time Mr. Gyllenhammar was CEO of the Swedish car group Volvo.

The maxim is used to reflect the belief that cash is more valuable than any other form of investment. Cash is typically considered to be the most liquid asset.

According to my mentor and friend Phil Symchych, cash is not king because the ace is more important than the king. Instead, Phil says, “Cash is not king, it’s the Ace.”™

Without cash your business cannot survive. A lack of cash is like Kryptonite to Superman. Cash is indeed the ace in your business.

If you would like to learn how to generate more cash in your business and thrive rather than survive, give us a call. We are experts in business and helping businesses get into better cash positions.  503-312-3145

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The P&L (profit & loss), or income statement, is simply a report of your revenue minus your expenses, which equals profit. As my last blog post explains: profit is not cash but the theory of cash.

Your P&L is like a movie of a period of time in your business. Your P&L is a lagging indicator of what has already occurred in your business in the previous month, quarter, or year to date (YTD). It is essentially an old movie since you tend to get the information weeks after the month or quarter has closed.

The most effective use of your P&L is as a comparison tool to see how your business is doing compared to the previous month, quarter, or YTD. What is most effective is to compare it to the same period of time for the previous year or several years to measure progress in your business.\

As a business owner, it is imperative that you understand your P&L and use it as a comparison tool to help you to ask better questions to make better decisions. If you would like help understanding your financials, give us a call. 503-312-3145

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Recall that your P&L, or income statement, is like a movie in that it covers a period of time within your business. Your balance sheet is more like a snapshot in time since it is taken on a particular date in time (for example, December 31, 2019).

The balance sheet is a record of the things you own and what you owe. Like the P&L, it is a very useful tool to compare with the same date in time for previous years to determine how your business is performing year to year.

An important note about the balance sheet is that if you are using cash-based accounting, your accounts receivables and inventory will not show up on your balance sheet. This can make a significant difference in the wealth within your business and your financial statements. Your banker will typically refer to your balance sheet to determine your retained earnings (wealth) in the business.

A common error I see business owners making is taking too much cash out of the business rather than building wealth. When you do this, you are putting your business at greater risk in the event something goes wrong.

If you would like to have a better understanding of your financials and how to increase top-line revenue and bottom-line profit, give us a call. We are experts in business. 503-312-3145

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 Last October 2019, a local banker called me with an opportunity and asked if I could meet with a company that had been losing money for a number of years and was in trouble.  When I met with the owners of this company I discovered that they had a business consultant working with them trying to make small tweaks and adjustments to their business that was not helping them overcome the losses they were experiencing and the current year had not improved as they had hoped it would.

Instead of making slight tweaks and adjustments to their current business, I informed them that based on the fact that they had progressively loss more and more money every year that tweaks and adjustments were not going to cut it and they were at risk of going out of business. What they needed was to make a sharp right-hand turn and do so immediately or they were going over the cliff to bankruptcy. The path they were on was not sustainable in any way, shape or form.

I strongly recommended, based on my decades of business experience and financial expertise, that if they were serious about getting their business back on track and were willing to do the hard work, I believed that we could turn this business around. They agreed that they couldn’t continue on the path they were on and they were tired of the stress of losing money every year with no light at the end of the tunnel. The owners agreed to have me help them turn their business around into a profitable business going forward.

We immediately took a deep dive into their financials. We focused on creating a marketing plan, a sales plan, a line item expense and COGS analysis, a budget and a weekly fiscal meeting to go over the numbers since the numbers drive everything in the business. Do to the Covid-19 virus there was a significant disruption to an annual event that they were accustomed to hosting, so we had to pivot and go to a virtual marketing plan to maintain the sales momentum.

After one year the results have been amazing.

• As of the end of November 2020, the company has had a 37.5% improvement in net profit
• The company is set to make their first profit in six years
• Optimism for continual growth is high

This has been a successful turnaround project so far and our projections are that this will be the company’s best year ever in last ten years, and we have done it during a pandemic. There are many companies currently struggling thinking that they will be unable to continue to operate and come out on top again. Here is an example of a company that has been able to so and you can as well.

If your business is struggling or if you are not getting the kind of results you think you should be getting, then reach out to me. I am an expert in business growth and success helping my clients to achieve greater success and take their businesses to a new level by increasing top-line revenue and bottom-line profit while enhancing valuation, liquidity, and equity.  503-312-3145

www.garyfurrconsulting.com

garyfurr@garyfurrconsulting.com

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The numbers drive everything in your businesses. Without a complete understanding of your numbers, you cannot effectively evaluate how your business is doing. And no, you cannot manage the business from your checkbook, though many business owners try.

I find far too many businesses wait until the end of the year to see how they are doing. By then it is too late to make any changes. This is dangerous, if not deadly, to businesses.

If you want to be a great chef, you must learn the language of cooking—teaspoons, tablespoons, ounces, pinches, etc. If you want to be a great musician, you would need to learn the language of music—chords, sharps, flats, etc.

If you want to be successful in business you need to learn the language of business, which is accounting.

1. Know Your Numbers: I am not saying you need to be an accountant or have an accounting degree, but you do need some basic accounting knowledge. Doing business without understanding your numbers is a bit like driving a car without instruments. You may think you are going 70 mph when you are only doing 35 mph. Or you think you have a full tank of gas when it is really only a quarter full. They say knowledge is power, and that is certainly true when it comes to your numbers.
2. P&L, Balance Sheet, Cash Flow: The P&L (profit & loss) or income statement are simply a report of your revenue minus your expenses, which equals profit. Your P&L should be prepared and reviewed no less than monthly. Income statements are like a movie of a period of time in your business; for example, quarter one (Q1), quarter two (Q2), or YTD. It is important to note that the P&L and balance sheet are lagging indicators, and when you get them from your accountant or bookkeeper, the information may be three or four weeks old.

The balance sheet is a snapshot in time and a record of the things you own and what you owe. Having an accurate balance sheet is vital to your business because it allows you to measure profitability.

Cash is the lifeblood of your business and understanding how cash moves in and out of your business is critical. Will your daily operations generate enough cash to keep the business running and repay debt? Business owners often think of net income as cash, but net income at the bottom of the P&L or income statement is not cash but the theory of cash. The P&L does not take into account your debt (principal) payments or owner’s draws on the business. The cash flow projection is the tool to help you see where your cash is going.

3.  Metrics: It has been said that what we measure improves. Utilizing metrics to measure progress will help your business improve and be more profitable. What are your line item expenses as a percentage of revenue? For example, what is COGS as a percentage of revenue? How does it compare to previous years? What is the percentage on a monthly basis? What is each line item as a percentage of gross profit? How is it tracking month to month? By tracking your metrics you are able to ask better questions and make better decisions in your business.

Improve your financial knowledge and improve the success of your business. You can’t run your business form the seat of your pants or from your checkbook. You must understand the numbers in your business. Want to improve your financials in your business?  Give us a call. 503-312-3145

garyfurr@garyfurrconsulting.com

http://www.garyfurrconsulting.com

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Nothing of any great significance is ever accomplished alone. While you are starting out you likely cannot afford to hire a management team, but there is no reason you cannot assemble a team of professionals to advise you when you need them. Once you are established and generating revenue, you can consider putting a management team in place.

As COO of a $40 million company, I was responsible for the finance department as well as all other departments. That is when I learned that you need a good relationship with your banker.  Our banker was essential to our success since business did not always go as planned; yours probably does not always go as planned either. Having an established relationship with your banker before times get tough helps you to navigate the tough times in business.

1. Bankers as Strategic Partners: There are times in your business where the relationship with your banker will keep you going. Your banker wants you to be successful and they can be a valuable resource to help you achieve that success. They understand business and they understand that business does not always go as planned. Treat your banker as a trusted advisor, not as someone to avoid. Be proactive with your communication with your banker.
2. Advisors who Have Been There: In addition to building a strong relationship with your banker, I suggest that you also get a business consultant, mentor, or coach. There are a lot of professionals in the consulting and coaching space. My advice is to pick one that has actually managed or been in charge of a growing company, not someone who has been to a two-week coaching program. You cannot learn how to lead and manage a successful business by taking a two-week training series. The most successful consultants and coaches have actually been in the trenches running companies in good times and bad. Look for a professional with a successful track record.
3. Building Your Advisory Team: In addition to your banker, consultant, and coach, I suggest that you also create a list of professionals that you can turn to for guidance and advice. You should have an attorney, a bookkeeper or accountant, and an insurance agent to serve as advisors for your business. They should be proactively providing you with guidance and advice. Remember, you do not have to go it alone, and you shouldn’t go it alone. Chances are good that you are skilled in your profession, not in the fields of law, accounting, and insurance.

 Learn how to develop a great relationship with your banker. Get my book, Make Your Banker Happy or reach out to us. 503-312-3145

garyfurr@garyfurrconsulting.com

http://www.garyfurrconsulting.com

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