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Laurie and the Ledger

January 22, 2012 By Leave a Comment

What do QuickBooks, an iPhone and the Internet have in common? They connect us with timely information.

What do business people need? They need reliable information; quickly, cheaply and efficiently.

What do we do with all this information?  We make decisions!

I would ask only one more question: Is unlimited information helping us make better decisions, or is it complicating our decisions?

I grew up before the digital age. It was a time where the ‘establishment’ or ‘keepers of the information’ were my parents, teachers and the encyclopedia. As odd as it may seem to young people today, those limited sources were actually sufficient to prepare me for a successful career in business.  Some might say it was a simpler time. I prefer to say it was a time with fewer distractions; and this leads me to the title of this blog – Laurie and the Ledger.

I mastered business accounting not by being given tons of electronic information and data, but by simply learning to use a ledger – a proven and easy to understand way to keep track of money.

So let’s roll back the clock. I’m 10 years old (ok…a long time ago), and I’m in my Dad’s store on 33rd Street in New York City. Across the street is the Empire State building. It’s big, I’m little. The workday had started.  My Dad’s bookkeeper, Dora, taught me how to use an adding machine. She would hand me a stack of sales receipts and I would add them up.

When I finished my job I handed it to Dora. She took out a big black binder and recorded the numbers. She wrote the information on the sales receipts page, imprinting by carbon on a second page, right behind the first. I knew this as double entry accounting. It was the way a business owner tracked expenses, revenue, and profitability.  Since each entry was posted on two different ledgers simultaneously, it resulted in a debit and a credit, and the books would always balance. If they didn’t, you knew you had to go find the error.  The bookkeeping records provided a quick, reliable and efficient snapshot of the company.

By learning how a ledger worked, I learned what mattered and how to account for it.  That business wisdom has never left me; providing a keen sense of awareness to practicality.

Today, when I search the Internet for new information that might help me make decisions, I don’t get confused or distracted. I just remember what really matters: The basic and timeless lessons I learned on the ledger. 

I need timely information from a trustworthy source that is both concise and straightforward.  The information must come from a competent source that has a proven track record and is respected in the specific industry I am working with.  My decisions are made based on the efficient delivery of information; similar to the practicality of the double entry bookkeeping ledger of my youth.

What have you learned in your life experience that is your source of wisdom?   Where and how was your knowledge base built?  When you recognize the important lessons you have learned in your past, you will be able to make sound judgments as you sort through the plethora of online information.

Filed Under: Business Strategies, Laurie's Blog, On Trend, On Track

Dollars and Sense

November 7, 2011 By Leave a Comment

 

Financial Analysis may sound like a daunting task to some people, especially if the subjects have never really been explained to them in a common sense way.  I had an opportunity to teach a Finance student of mine what I like to call Common Sense Financial Analysis in 20 hours, and within that 20 hours, I’m confident he learned more than in four years at our prestigious local University.

Essentially we reviewed the three critical financial statements, the components of each, why those components were important, when a company reported, to whom they reported to, and essentially, what information you could get out of the numbers you were given.   Sure there are a million ratios and terms to make things sound fancy (like the beloved weighted average cost of capital) but common sense is where you start, and ironically, once you understand basics, the rest comes relatively easy.

 

Boiled down Financial Analysis:

 

An Income Statement tells you whether or not a company (through selling its goods or services) is making money or not.  Extended analysis will shed light on revenue trends, expense management, margins, consistency etc, but essentially it’s called a Profit and Loss statement because that’s exactly what it tells you:  during a period of time, did this company experience a profit or a loss.

 

A Balance Sheet tells you at any given point in time, what a company owns, what it owes, and the difference, which is what it’s worth.    If your house was on a balance sheet, what you own (your asset) is worth say $100k.  What you owe (your liability) is $80k, and what you own (your equity) is $20k.  What you own, less what you owe, is what you are worth.   Assets- Liabilities = Equity.  Or on a balance sheet Assets = Liabilities + Equity.   They must equal so the sheet balances, hence the name.   Extended ratios from the balance sheet will tell you if a company is too leveraged (borrowing more than they should), has a good cash cycle (A/R and A/P analysis), Liquidity (can they pay their short term bills) and insights into ownership structures (is the company financed through stock, borrowing, owners capital etc).

 

Our third statement, a Cash Flow Statement essentially tells you, again over a period of time, what inflows (sources) of cash you had over that time, and what outflows (uses) of cash you had.  The interesting thing about a cash flow statement is it is created by the change of the balance sheet from one period to the next.  So, changes in what you own (buying or selling) would be uses or sources of cash.  Changes in what you owe (borrowing or paying off) would also be sources or uses of cash.  Changes in equity (selling stock, buying stock, and investing capital for example) are also sources and uses of cash.

 

As you can see, this is not rocket science, but you would be amazed at the number of financial and non financial people that can’t make these simple connections to their work and businesses.  The really cool thing about business financial statements is that they can be applied at a personal level as well.  You can calculate your personal ‘profit or loss’ for a given year, your personal net worth on your balance sheet, and your personal cash flow statement (changes in your balance sheet) over time.

 

Not understanding your financials is like driving with your eyes closed.  Sure you may be able to make it down the street, but I wouldn’t recommend the highway.


 

 

 

 

Filed Under: Business Strategies, Entrepreneurial Skills, Free Warrior Blog, Guest Blog, On Trend, On Track, Productivity Systems Tagged With: , , , , , , , , , , , ,

Ideal Clients Bring Ideal Results

October 28, 2011 By Leave a Comment

Being able to describe your “ideal” client can really make the difference between having a business that fulfills your goals and visions, and one where you struggle with the mundane, the disruptive, and the resulting dissatisfaction you feel.

Yes, that is how important it is! And here are the three reasons why.

1. Your ideal client is one who believes they benefit from your service. They want what you have to offer. They come back to you over and over and then, they refer you to others.

2. Your ideal client makes you feel energized. Because you are clear on the value you bring, working with your ideal client validates your work and makes you want to do more of it.

3. Your ideal client is a better person because of you! When you connect with and serve your ideal client you enrich their lives, which in turn impacts the lives of everyone they touch.

Not working with ideal clients (and not saying “no” to less suited clients) costs you time, money and aggravation.

Filed Under: Business Strategies, Laurie's Blog, The Warrior Mindset

Strategic Partners: Who Needs ‘em?

October 28, 2011 By Leave a Comment

You do!  As your marketing efforts grow, think about who best to refer you to clients.  One answer is connecting with a trusted service provider who knows you and loves you.  First, make a short list of those providers who would give you a great referral if asked.  These are your “Advocates”.  Next, reach out to the Advocates and see who would be interested in increasing awareness with clients in each other’s sphere of influence (SOI).

Some of the ways you may increase awareness are:   put flyers/brochures in the office of that serivce provider (passive), insert a link to each others website on your sites, give them a testimonial to send out or hold some type of event that brings your SOI’s together (active).  Obviously the event type is more work but there is more to be gained by it.

One group, BNI (Business Networking International), that I’ve had relationship building results with, does this on a local level.  BNI uses strategic partners to construct a structured, positive, and professional “word-of-mouth” program that enables them to develop long-term, meaningful relationships with quality business professionals. 

Jump start your own system by sitting down with your trusted providers for one-on-one meetings; go for a cup of coffee and brain storm how to bring the two spheres together.  Remember it has to be organic, meaning natural rather than forced.  So what if your business is not on a local level, that trusted provider is only a Skype call away. 

At FEW we’ve found that the often overlooked Advocates are your best cheerleaders and you want to know who they know.
 
I’d love to hear your stories about how you’ve used Strategic Partners to boost your business, email me at tina@freeenterprisewarriors.com

Filed Under: Business Strategies, Free Warrior Blog, Tina's Blog

Accountability – why do we let it stop?

September 28, 2011 By Leave a Comment

School started this month and my 11th grade daughter had some scheduling issues.  We had been unable to contact her guidance counselor and the issue needed to be addressed.  I told her the only way that it was going to get changed was to go in there and ask the counselor to meet with her right then, or to make an appointment for the next day.  We agreed that she needed to make sure the issue was handled by that Thursday. 

My daughter called me from school on Wednesday and told me that it was taken care of and she was happy with her schedule.  Wow, discussing an action plan and a deadline really worked!  She even followed up, I was so proud of her. 

But what happens to this scenario when we grow up and become adults?  As a child we are accountable to our parents and teachers.  Sometimes they put our feet to the fire and tell us we can do better.  Sometimes they check up on us to see if we’ve done our homework.  They always want to see our report card.  The watch us, and they have high expectations for us. That caring and attention (and the inspection) propel us forward.

What happens to that accountability when we are adults and on our own?  Sometimes, if we work for someone else, our boss or supervisor holds us accountable?  But, if we are self-employed or we own our own business, how do we keep ourselves accountable?  Who is watching us and asks if we’ve done what we said we would do?  Who encourages us and then checks on our progress?

The most successful entrepreneurs and business owners build accountability into their lives.  They give another person, perhaps a coach or consultant or even a board of directors the permission to hold them accountable.  They schedule regular meetings with an agenda and a way to report what they have done and how it turned out.  It keeps them focused and on track.

One of the easiest ways is to find an accountability partner – someone you can trust to tell you what you need to hear (not just what you want to hear).  This person should be like-minded and success oriented, like you.  You share with them your clear business goals, action plans and deadlines.  Then you keep track of what happens and report it to them on a regular basis.

In a sense, you allow them to treat you like your parents did when you were young.  This adds structure and rhythm to what you do.  It keeps you focused and alert.  It doesn’t let things get off-track. It prevents you from developing the wrong habits.

Just like when you were in school, this accountability spurs creative thinking and gives you energy.  I call this “accountability partner momentum”.  And, the neat thing is, you can make the process mutual and hold each other accountable.  Of course, if this doesn’t work, you can always go ask your mom!

Filed Under: Business Strategies, The Warrior Mindset, Tina's Blog

Are You Willing to Let Us In? A short study in Collaboration

July 16, 2011 By Leave a Comment

Working with our “Virtual COO Services” clients has become for me an enlightening experience. We have clients in different industries, different financial situations and different motivations. Without a doubt, the most successful work we have done has been with those clients that are ready to collaborate with a team. When an entrepreneur is ready to open up, we can work together to create a process by which some of the most interesting and profitable ideas start. If the entrepreneur is not open to collaboration we have seen the energy just fizzle.

We try to keep to a weekly schedule of 45 minutes to 1 hour of team sharing. We do set an agenda for the meetings, but often we go off on tangents that produce some of the most creative action items. We then go ahead and implement those ideas and then meet back the following week to measure how that worked or didn’t work.

When everyone knows what the schedule is it also become a kind of accountability exercise. Everyone on the team knows what is expected of them for the next meeting. It has the strength of a boulder rolling down hill. It keeps building on itself until it has a momentum on its own.

When an entrepreneur is not ready to share or has not gotten to the frustrating and overwhelming tipping point when they know with all certainty they need a collaborative effort, we all just end up spinning our wheels. They may see minor results but not the intensity of sharing ideas that come from a committed team environment.

This for me has truly been a learning experience and continues to open my eyes to creative collaboration.

Filed Under: Business Strategies, Tina's Blog Tagged With: , , , , ,

Complacency?

May 16, 2011 By Leave a Comment

“A man’s work is in danger of deteriorating when he thinks he has found the one best formula for doing it. If he thinks that, he is likely to feel that all he needs is merely to go on repeating himself… ” ~Eugene O’Neill~

I’ve observed this time and again while working in HR for larger corporations: layers of people who felt entitled to a raise just for showing up or undermining the energy of the group with their complacency. They were “self-satisfied and unaware of possible dangers”.

Working with entrepreneurs, whose resources are stretched, you can see how crucial it is that their talent be motivated to do well and be their best. As an entrepreneur you cannot allow complacency to grow in your organization. If you do, you will end up spending double the time & energy to change that mindset. If the mind-numbing repetition of tasks sounds good to anyone, then you don’t want them working for you. They will not contribute new ideas, business or add to the culture of your organization.

The primary way to prevent complacency is to make the right hire in the first place. Surround yourself with like-minded people that share your energy and vision. But, sometimes even a great hire can slip into the “complacency” mindset. It’s the art of keeping them engaged and interested. You can find out through communication what makes them motivated. Schedule regular one-on-ones with employees and encourage open dialog. It’s a two way communication, you get to pass on your enthusiasm and passion, and they can share theirs back to you. You will light a spark and keep fanning it with the exchange of ideas, training and energy.

It’s a sure bet that if you are feeling frustrated, your talent is also. As a leader it’s your responsibly to bring it to the forefront and shake things up. If this doesn’t work, then it’s time to “cut bait”.- admitting it isn’t working and parting ways can be the right thing for them and for you.

Letting someone go is never easy, people sometimes looked shocked like it’s a surprise or they get upset. It can be very stressful for you, too. The first time I had to let someone go, they handed me the tissue box and they told me, “Don’t worry everything is going to be alright.” That person knew in their heart that it wasn’t the right place for them. (I have since learned to keep my composure.) Even if there is anger and tears (by both parties),you have to keep moving forward and do what’s right for the business. You must remove the complacency!

And, if making no decision is really a decision to do nothing. Then, the question is this: have you become a source of complacency?

Filed Under: Business Strategies, Tina's Blog Tagged With: , ,

WarriorTalk: Adapting to Change with Holly Luky

August 9, 2010 By Leave a Comment
Holly Luky of Four Corners Magazine

Holly Luky of Four Corners Magazine

It’s no secret that the print community has been suffering from the shift to online.  We hear about the large publication houses suffering in the news all the time.

But what about the little publications?

Holly Luky, owner and Editor of Four Corners Magazine, has made a successful switch.  And is really positive about it!

Matt and Laurie take some time to interview Holly and learn about her switch to the online world.  Take a listen and learn what you, as a business owner, can take from her switch to help you adapt in today’s technology-driven society.

Click play to hear the podcast or to download the mp3, right click the “Download” link and choose “Save as…”

Podcast: Play in new window | Download

Filed Under: Business Strategies, Warrior Talk

“On Trend” with Laurie

June 12, 2010 By Leave a Comment

There is a “sweet spot” in business which is just before an idea, product, service or industry takes off. It is when the risk has been minimized because there is enough use or acceptance that momentum is garnering. This is the place I call “On Trend”. It is the place where if you recognize it and decide to be a part of it, you will receive the benefit of its growth as it moves into the greater mainstream. Pretty simple really.

So you can jump into this game on the front end and be an innovator. Less than 3% of the population falls in that group. The upside is great but so are the risks. Or, you can join the early adopters. This makes up about 13.5% of the population. I call this the low risk, high reward zone which is a perfect place to enjoy the ride.

As an entrepreneur, I’ve lived this principal. I’ll be writing about this and bringing content to the site that will help you see emerging trends. On Warrior Talk, I will bring “on trend” subjects into focus. We’ll interview people who are “on trend” as well as have discussions and conversations about the trends and how to be in step with them.  Keeping your business in step with trends is what will keep you energized and your venture thriving.

I’d love to hear from you whenever you want to jump in. It’s a big world and there is massive change underway. I am always looking for great stories, insights, and points of view. Please email me at laurie@FreeEnterpriseWarriors.com with your thoughts.

Filed Under: Business Strategies, Laurie's Blog Tagged With: , , , ,

The SWAT (Smart Women With Available Time) Team

June 9, 2010 By Leave a Comment

I found this Wall Street Journal article extremely interesting and would like to pass it on to other “stay at home” entrepreneurs and business owners who are looking for dedicated, experienced employees for their positions:

The Wall Street Journal:
Lots of employers would like to be able to hire cheap, temporary teams of seasoned pros with experience managing $2 billion investment portfolios, running ad campaigns or earning Ph.D.s in neuroscience.
But few know the secret to finding temps of that caliber: Look on playgrounds and at PTA meetings.

The decision among some highly educated women to stay home with children is sparking a countertrend: The rise of the mommy “SWAT team.” The acronym, for “smart women with available time,” is one mother’s label for all-mom teams assembled quickly through networking and staffing firms to handle crash projects. Employers get lots of voltage, cheap, while the women get a skills update and a taste of the professional challenges they miss.

Skilled workers taking temp projects isn’t new, of course. What’s different about these teams is that they’re available on short notice because the women are usually at home; they tend to work cheap because their main motive is to keep their skills fresh; and they’re often extraordinarily well-qualified, having left the work force voluntarily when their careers were on the ascent.

This article sums up the win-win of hiring SWAT members who can multi-task and add value to a business.  I know, I am one of them.

Contact me if  you have any comments – tina@freeenterprisewarriors.com

Filed Under: Business Strategies, Tina's Blog Tagged With: , ,