Archive for the ‘Finance’ Category
Thursday, July 1st, 2010 |
This podcast is all about the Small Business Administration, a great resource for small businesses. The need for the SBA becomes apparent when you realize there are 26 million businesses in the United States – and most of them are small businesses. 36% of those employed in the US work for a company employing less than 100 people. David also gives a history of the SBA and an overview of how it has helped Alaska over the years.
The first special guest is the head of the Small Business Administration – Karen Mills, Administrator. She has a Harvard MBA and a background in venture capital. In her home state of Maine, she was instrumental in developing the “cluster approach” to grouping businesses together. David asked her some great questions.
David has the opportunity to interview a recipient of an SBA award – Marty Weisner, from Marty’s New York Bagel Deli. His funding was made possible by the American Reinvestment and Recovery Act (also known as the stimulus bill)
Listen or download below:
A Small Agency with a Big Mission
Posted in Business Planning, Finance, Government | 2 Comments »
Monday, June 14th, 2010 |
In this follow-up to my first article, Become a Peerless Competitor I, I continue explaining my Peerless Pyramid. I address the middle layers, Products/Services and Marketing/Sales, which are the center of every business.
As I explain in the article Become a Peerless Competitor II,
Becoming a “peerless competitor” means building a solid company modeled after a pyramid that is broad at the base and sharp at the apex. Providing great customer service will not go very far without the proper foundation. Financial resources must be sufficient to support the company, followed by putting in place the kind of financial controls and accounting systems that safe guard your financial resources.
Read the full article: Become a Peerless Competitor II
Posted in Business Planning, Finance, Marketing | No Comments »
Wednesday, April 7th, 2010 |
David Weatherholt tells of his audit woes and talks marketing in this episode of “Getting Down to Business.” Even an accounting expert may be on the receiving end of an audit- Dave gives advice to small businesses on how to survive audits in this surprisingly entertaining segment.
Later in the show Dave is joined by Amanda Cullen founder of Zoo in a Jungle Marketing, who specializes in small business marketing. Amanda gives her 5 rules for small business marketing and delivers a pop quiz to listeners, challenging them to put their business to the test. Here are the rules:
- Be easy to do business with.
- Communicate with your customers in ways that are meaningful to them.
- Know where you want to go.
- Involve your team.
- Keep at it.
Listen or download below to take the test and see how your business stacks up!
Marketing and Taxes
Posted in Finance, Getting Down to Business, Marketing, Small Business | No Comments »
Monday, March 1st, 2010 |
Julie Saupe, CEO of the Anchorage Convention and Visitors Bureau, joins the show to give a tourism update for Anchorage. They talk about the 30-year history of the ACVB. While last year was the first year tourism declined in Anchorage, Julie is hopeful for the future. She shares her community report with listeners, and what that will mean for Anchorage tourism.
Dave’s second guest is Sam Dickey, Deputy District Director of the Small Business Administration. SBA programs are changing, and Sam has the details. He is hopeful that Congress will keep funding some programs, but deadlines for stimulus money have passed. They discuss trends and facts related to small business lending and what this could mean for your small business.
Listen or download below:
Alaska Tourism Update
Posted in Alaska, Finance, Getting Down to Business | No Comments »
Tuesday, February 16th, 2010 |
Non-profit organizations perform many necessary functions in our communities, but they face many unique business challenges, as well. Dave’s first guest is Candace Winkler, CEO of Thread, an Anchorage-based non-profit. They discuss some of the business aspects non-profits focus on more than other organizations, such as having a transparent accounting system, keeping administrative costs reasonable and keeping a strict budget. Candace also talks about her experience in rebranding Thread (formerly Child Care Connection), and the wide variety of non-profits that are in Alaska.
In the next segment, Dave brings in Jason Stralka to discuss taxes for non-profits and answer listener questions. Jason is a tax expert for Carter Tax, Inc. Dave discovers that he has a passion for taxes. Jason knows that taxes are more than just filling out the forms– he loves finding loopholes and saving his clients money. However, he realizes the importance of being accurate and paying all the taxes that are due to the IRS.
Listen or download below:
Non-Profits are Businesses
Posted in Alaska, Business Planning, Finance, Getting Down to Business, Marketing | No Comments »
Monday, February 1st, 2010 |
Dave interviews Andy Riddell, VP and Business Banking Manager at Wells Fargo Bank. The discuss how important it is for a small business to develop a relationship with a bank. Andy provides advice for how to reach the business expert at your bank and how to start the relationship.
In Dave’s news update, he talks about Congress’s recent changes to the SBA loan program and other stimulus package details affecting small businesses. There might be good news for small businesses struggling to obtain loans.
Listen or download below:
Building a Banking Relationship
Posted in Finance, Getting Down to Business | No Comments »
Wednesday, January 27th, 2010 |
The diversification principle has long been accepted as an important investment strategy. Can the diversification principle be applied to your business as well?
In this article from the January 2010 Business/News & Views®, I advocate that businesses should start thinking differently about their business structure. It is dangerous to put all your financial eggs in one basket, just as it is dangerous to have only one stock in your investment portfolio.
For my recommendations on how to start this analysis and implement the changes you need, read the full article: Diversify Your Business
Posted in Business Planning, Finance, Innovation | No Comments »
Thursday, January 21st, 2010 |
The January issue of Business/News & Views® contains great advice for your business in the new year.
David Weatherholt encourages you to “Diversify Your Business” — using the proven investment principle of diversification to look at your business in an innovative, risk-reducing way.
In David’s Economic Summary, he discusses the Federal Reserve’s approach to handling the recession, along with presenting his interpretation of important economic indicators.
Amanda Cullen weighs in with advice on “How Not to Treat Your Customers,” and our Internet Tips and Tricks provides tips on “How to Get Repeat Visits to Your Web Site.”
Read Now: Business/News & Views® - January 2010
Posted in Business/News&Views®, Economy, Finance, Innovation, Marketing, Technology | No Comments »
Wednesday, November 11th, 2009 |
How many of you have ever heard of a superhero needing a business plan? The reason you haven’t is not because they don’t need them. The real reason superheroes most often succeed with their entrepreneurial pursuits is because they hire business planning superhero consultants. They get and expect super results because they aren’t looking for the easiest or the cheapest ways. It’s because they know the nine essential personality traits of a business plan superhero consultant.
- Do they ask you about you and your business?
- Do they have a background in finance?
- Are they savvy with marketing?
- Do they have experience in business?
- What are their academic credentials?
- Do they have business writing skills?
- Are they reliable and ethical?
- Are they experienced and proficient at market research?
- Do they talk about success in business and have your best interest in mind?
These are the nine essential personality traits that are critical to success in business planning. The first is the ability of the consultant to look at you as an individual. Can they look you in the eye and meet you face-to-face? Are they able to be genuine when asking you questions about your desires, hopes and passion for your business? Make sure you are comfortable with your consultant and able to communicate effectively. Be sure your values and theirs are compatible.
Does the potential consultant superhero have a background in finance? When hiring someone to lead you in your business planning, you want a person who can develop meaningful financial projections. This means knowing what investors and lenders look for in solid business ventures. The financial section of your business plan provides the most critical data within your plan. It is necessary to hire someone who has the capacity to fulfill this need in your business plan. When you start with solid market projections and use this data to drive the pro forma financial projections and the breakeven analysis, you can begin to see the value of working with a person who has a solid financial background. The success of your plan hinges on the ability to link market data to strategic financial performance.
Has your potential superhero consultant had any business experience? It is so important for your consultant to have been involved in a start-up business in the past. Have they had any businesses themselves or been involved with other ventures which have grown into successful and thriving businesses? They must understand this as well as customer relations. Is your potential superhero consultant prepared to answer such questions as how the mind of your customers affects whether they will buy your product or service?
Another essential personality characteristic necessary is experience with quality goods and services. Has your potential consultant been involved in companies that have stood the test of time? And do they have experience with both large and small organizations?
What are their academic credentials? Real world experience is important but so is education. What degrees do they hold? Do they have a graduate degree and any professional certifications? Check them out and see what they have done with their education.
Largely a forgotten talent, it is important that your potential superhero consultant have experience with business plan writing. Can they write? Can they provide samples of plans they have written? What are some examples of other documents that they have written?
Are they reliable and ethical? Do they understand the real world and deadlines? Get a feel for how down-to-earth and grounded in experience they are. Can they help implement the plan? Do they provide high quality work? Can they provide benchmarks that are practical and consistent?
The last and final talent separates many an amateur writer from a truly gifted business-planning consultant that is the ability to do competent and reliable market research. Does your potential consultant have knowledge and ability to conduct effective and accurate market research? Will they provide you with accurate data that will be critical in assessing the competition and aid in the growth of your business?
Success in business requires planning, focus, execution, hard work and a little luck. Business planning is a key component of any business’s success. For example a properly developed breakeven analysis will provide a visual picture of the risk and reward your idea or concept faces. This is why choosing the right consultant is so important. When you choose one that is a superhero, you know his skills are based on strong business philosophy, financial analysis, and projection experience. The real superheroes have an understanding of broad general business concepts and a rich array of industry specific knowledge. This alleviates the possibility of industry-specific blind spots, and allows your superhero consultant to objectively analyze the industry and provide innovative solutions. Getting a high quality business plan starts with hiring a business planning superhero consultant!
Posted in Business Planning, Entrepreneurs, Finance | No Comments »
Tuesday, September 8th, 2009 |
Change seems to simply just happen. Malcom McLean, the trucking entrepreneur, revolutionized the cargo industry by introducing metal shipping containers. The barcode transformed inventory management; desktop publishing revolutionized the printing industry, and now Extensible Business Reporting Langue (XBRL) is about to transform the accounting profession.
November 10, 1494 is a significant day in the history of accounting. On this date, Luca Pacioli, a Franciscan monk and mathematics professor, published the first book on double-entry accounting. Friar Pacioli’s book described the financial transaction process used by merchants in Venice during the Italian Renaissance period. His book laid out the basis of the double-entry accounting system still in use today; the source of the beloved debits and credits.
The advent of computerized accounting software marked a dramatic shift away from paper and hand recording of business transactions-the first significant change and a big step in the automation of the accounting process. This shift, after 470 years, automated what had been an extremely labor intensive process by reducing the number of steps; the need for multiple bookkeepers, ledgers, and journals and, ultimately, the overall size and cost of an accounting department. While this automated process brought significant changes, the accounting industry still has not really deviated from the basic system described by Friar Pacioli.
August 1, 2009 is another significant day in the history of accounting. The U.S. Securities and Exchange Commission (SEC) mandated that XBRL format be used for all quarterly reporting. The Electronic Data-Gathering, Analysis, and Retrieval (EDGAR) system website reported there were “no major complaints, though a couple of issues have understandably surfaced for companies filing for the first time in this format.” The use of XBRL represents a significant advancement and further refinement in the automation of accounting. This step in the accounting automation process still leaves Friar Pacioli’s system intact and will ultimately place control of financial reporting in the hands of management, owners, and investors-not just accountants or financial management. XBRL will open the door to imaginative and innovative refinements that empower entrepreneurs who will further define and drive changes in the accounting world.
XBRL is a computer readable format used for data tagging that is more easily understood by comparing it to the UPC labeling used for barcoding of products. Like barcodes, each piece of financial data is tagged and stored in a database for later use. Data mining will then retrieve financial data for use in financial analysis and reporting, opening the way for microscopic or telescopic examination of this information, thus producing the ability to “slice and dice” financial data for utilization in more informative and useful ways. The significance of this kind of change may not be readily apparent to all, but believe me it will have ramifications equal to that of containers on shipping or barcoding on inventory management.
The XBRL bonus for management and owners of all small businesses will be the ability to retrieve real time financial data in a management friendly format. This will eliminate many of the historical financial unknowns plaguing your current decision making process. How many times have you made important business decisions without the benefit of supporting financial information simply because accounting could not get you timely and useful data? We are on the precipice of big changes that will impact us all.
Posted in Finance | No Comments »
Saturday, August 15th, 2009 |
In the August 2009 issue of Business/News & Views®, small businesses will find a wealth of information about building website traffic, changes that will dramatically affect the accounting industry and how to protect your brand on the internet.
David Weatherholt introduces readers to XBRL, the revolution in accounting. Amanda Cullen provides tips for increasing traffic to your website.
Read now: Business/News & Views® – August 2009
Posted in Business/News&Views®, Finance, Marketing, Recession, Small Business | No Comments »
Saturday, July 25th, 2009 |
When you borrow money, there is a risk involved. Dave evaluates the risk to you and to the bank– and how these risks will affect your business. Everyone knows the cost of interest involved, but there are other costs and risks associated with borrowing that all businesses need to be aware of. He reminds businesses they need to, “Buy low. Sell high, and Keep the difference.”
Dave’s guest on “Getting Down to Business” is Mitch Jacobs, founder and CEO of On Deck Capital.
And in the news, Dave talks about the issues around mandating small businesses to provide health insurance for their employees.
Listen or download below:
Alternative Lending Sources
Posted in Business Planning, Finance, Getting Down to Business | No Comments »
Sunday, July 19th, 2009 |
Financial ratios sound intimidating, but Dave reassures listeners that it’s just, “Looking at the story behind the numbers.” After his regular news update, Dave helps Sunburst Coffee learn the importance of industry standards, ratios and other financial concepts. Dave makes these tools easy to understand and apply to your business.
Listen or download below:
Financial Rations: The story behind the numbers
Posted in Business Planning, Finance, Getting Down to Business | No Comments »
Saturday, July 18th, 2009 |
Banks aren’t the enemy of small business, as Dave proves in this “Getting Down to Business” podcast. Dave takes listeners through the history of banking and how you can negotiate with them successfully for your business.
Relevant to today’s topic, Dave interviews Andrew Riddell, Vice President Business Banking Manager at Wells Fargo.
Listen or download below:
Creating a Loan Package
Posted in Business Planning, Finance, Getting Down to Business | No Comments »
Tuesday, July 14th, 2009 |
Over the past eight months, we have witnessed economic upheaval not seen since the 1980’s, over twenty years ago. The speed of the deterioration and lack of warning caught us all by surprise, leaving us in a state of shock and awe! Now that the shock has worn off and reality sets in, the surprise is that life goes on. This is a great opportunity to look at your business model, clearing away any debris from the economic storm, and prepare to move forward.
Winston Churchill, who understood turbulent times, said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” We are now presented with a unique opportunity to take the time to examine meaningful changes in our business models.
Start by reviewing all expenses. Nothing is sacred- trim, trim, trim. Every penny trimmed is important, but keep in mind that trimming expenses alone will not lead to a better business model. Trimming 100 percent of expenses is certainly possible but would also result in closing your doors. This may be the best option but should not be taken without looking at all available options and preparing to weather this economic storm. Let’s look for some opportunities.
Look hard at bank fees. If your business has an “analysis account” you may be surprised by the rate increases. Banks are businesses and need to make a profit, however, sit down with your banker and go over your statement line-by-line, ask questions and evaluate the options. You may be surprised at services that can be trimmed because they are redundant or not used.
Review telephone and cellular telephone accounts going over it line-by-line like your bank statement. You may find redundancies or items that are not used. For example unlimited texting is a great option but if a minimum number of text messages are actually sent then it would be cheaper to pay a per text message charge. Again, trim, trim, trim.
Talk to venders, and ask for prompt payment discounts. Discounting terms were frequently used to enhance cash flow but usage of this practice has declined. Don’t be afraid to ask.
If you lease space and are locked into a contract that was negotiated at higher rates in better times, then it may be a good time to sit down with your landlord and review the lease terms. They may be receptive to reasonable accommodations.
Compensation is an area that should be reviewed. Look for creative bonus opportunities that can create a win-win for you and your employees.
Review marketing and advertising expenses. Marketing expenses may look like a prime area for reducing overhead expenses, but remember the reason for this expense category. Marketing and advertising expenses should be viewed as buying customers. Measure every expenditure against the results produced (i.e., does it produce customers?) If it doesn’t, then pare down. If it does, you may need to do more of a good thing and even increase effective marketing.
Advertising spent on branding is hard to directly trace to new business. Branding is an effective part of your overall marketing campaign and may be a good reduction area, but don’t eliminate it completely.
Using an economic downturn to review expenses and trim, trim, trim is a great first step but is only half of the solution. Look hard at sales and revenue sources and add, add, add.
Cash today is better then cash tomorrow. This basic finance concept works and can be your incentive to provide discounts to your customers for early payments. Look for creative ways to reduce your accounts receivable.
Review all product/service categories, applying a simple cost benefit analysis and modify or eliminate product/services that don’t produce adequate benefits.
Be creative and look for new sales channels, getting your products/services to customers, such as using kiosks, the internet, dealers, or outside sales efforts.
Look for new products/services and business opportunities. Changing your business model is not bad. Every business that successfully makes it past their first five years usually has changed significantly from the business that started. In the beginning of a business, product/service knowledge was your advantage but now that you have demonstrated successes operating a business, look for ways to replicate that success by using your business experience to promote other product/service options.
Paying attention to changes in this economic climate is a good thing as long as it leads to healthy introspection, not fear. Hopefully, this article motives you to redirect that fear of the unknown or change using past successes to see the “opportunities in the difficulty.” What opportunities do you see?
Posted in Finance, Recession, Small Business | No Comments »
Saturday, May 30th, 2009 |
During his KABA radio show, “Getting Down to Business,” David Weatherholt interviews Lynn Klassert, Senior Relationship Manager for Key Bank.
The bulk of the show is devoted to the financial projections of fictional Sunburst Coffee, Limited. The scenario: Dave is Anchorage’s best barista and wants to bring his blends to the city. But there are so many questions. How many customers do we need? When will we break even? Where will the money come from? Where should we locate the business?
Listen or download below:
Business Plan: Financial Projections
Posted in Business Planning, Finance, Getting Down to Business, Small Business | No Comments »
Friday, May 15th, 2009 |
Do your managers have the right financial tools they need to make sound decisions? Find out which tools are crucial in May 2009’s Business/News & Views®.
Also in this issue, David Weatherholt weighs in on the Chrysler bankruptcy and what effects it will have on the future of bonds. Internet Tips & Tricks provides some trend-spotting advice for your business.
Read Now: Business/News & Views® – May 2009
Posted in Business/News&Views®, Finance, Recession | No Comments »
Wednesday, April 15th, 2009 |
Building a blog with WordPress, crafting a road-map for your finances and computing the value of a customer– it’s all in the April 2009 issue of Business/News & Views®.
Read Now: Business/News & Views® – April 2009
Posted in Business/News&Views®, Finance | No Comments »
Sunday, March 15th, 2009 |
David Weatherholt provides some great financial knowledge for the March 2009 issue of Business/News & Views®. He explains income statements in detail and discusses key economic indicators and why they matter.
Read Now: Business/News & Views® – March 2009M/a>
Posted in Business/News&Views®, Economy, Finance, Recession | No Comments »
Sunday, February 15th, 2009 |
In the February 2009 issue of Business/News & Views®, we show some love for the balance sheet by explaining Balance Sheet Basics. David Weatherholt weighs in with a heartening op-ed on the dynamic, resilient US economy, and Internet Tips & Tricks tells you all about the Google tools you don’t know.
Read Now: Business/News & Views® – February 2009
Posted in Business/News&Views®, Finance, Recession, Technology | No Comments »
Monday, December 15th, 2008 |
December’s Business/News & Views® answers a lot of questions for your small business, such as:
What is a cash flow statement?
Does my business need a check up?
What is LinkedIn and how can I use it for my business?
Read Now: Business/News & Views® – December 2008
Posted in Business Planning, Business/News&Views®, Finance, Social Networking | No Comments »
Sunday, October 12th, 2008 |
In the October Business/News & Views®, David Weatherholt has assembled a stellar group of articles for your small business. From topics of relationship management to the economy to the importance of financial management, you will find a tip to help your business.
Read October Business/News & Views® now.
Posted in Business/News&Views®, Finance, Recession | No Comments »
