Month: July 2024
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Every Small Business Needs a Financial Operating System
We’re big fans (and users) of Gino Wickman’s EOS (Entrepreneurial Operating System), which outlines a useful framework for business management. I’d highly recommend if you’re in need of a basic structure for meetings, people management, and setting a company vision. What it lacks is a robust financial management structure, or what I’ll refer to as a Financial Operating…
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10 Lessons from Business Failures and Turnarounds
You might see this title and scratch your head, wondering why you’d want to read about turnarounds or business failures. It turns out there are incredibly valuable nuggets of wisdom in these stories. The foundation of any successfully run business is a strategy everyone understands coupled with a few key measures that are routinely tracked.…
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A Quick Guide to Managing Labor Efficiency
Let’s look at a concept that can help both service-based businesses and product-based businesses with managing arguably their largest expense line. It’s called the Labor Efficiency Ratio (LER). What is it? It’s a simple but powerful metric used to measure the effectiveness of labor costs in any business. To calculate your LER, take your gross profit and divide…
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Playing the Game
There’s a type of business (and owner personality) that I like to refer to as a GrowthCo (short for high growth company). We can learn a ton from these rare breeds. These businesses want rapid sales growth above all else, and they aren’t afraid to outspend their profits to achieve it. How do they stay alive? Usually…