small business

Evaluating Your Business Health

Posted by Carl Gould on August 30, 2010
7 Stage Success with Carl L Gould, News Articles / No Comments

Entrepreneurs and leaders of small businesses usually are really good at what they do – which is related to the products and services sold by their company. The problem is, they don’t always
know all the details ABOUT their business – especially how to evaluate its financial health. Sure, you could always look in the bank to see how much cash you have, but that would paint a
poor picture of the firm’s actual financial health and whether there will be any cash in the bank tomorrow. But having audited financial statements isn’t always the answer either – unless you
know where to look on them. I’m looking for specific tips that entrepreneurs and business owners can use to evaluate how healthy the numbers within their business are.

A: What key ratios they should be focused on and why?

CLG: Your quick ratio is a good way to show if you could pay your bills. The quick ration is simply how much liquid cash you have as compared to your expenses. We advise our clients to seek a quick ration of 1.5:1 another excellent ration is your current ration. This ration looks a bit closer to the horizon and determines your 90 day health and takes into account longer term receivable and payables.

A: If they were going to make a daily “dashboard,” what numbers should they pay attention to and why?

CLG: you can change the work ‘dashboard’ and change it to ‘cashboard’. In other words, daily monitoring is all about cash. What’s coming in what’s going out and tracking your numbers through each pay period. Cash is like oil in a car’s engine. It lubricates the entire machine and helps keep it running. Without it the entire machine can seize up and cease to function. These numbers are not necessarily line items on your financial or tax statements; however they make up sound financial management.

Carl L Gould is the president and Chief DISCoverY Officer CMT International, LLC (www.CarlGould.com), the farthest-reaching business mentoring organization in the world. Carl’s unique approach to executive coaching, business mentoring and performance training helps his clients achieve results worldwide.  His upcoming book, The 7 Stages of Small Business Success – From Startup to 7 Figures in Three Years or Less, will provide entrepreneurs and business owners a step-by-step formula to taking their businesses to the next level.

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Steven Slater – The Next Reality TV Star?

Posted by Carl Gould on August 16, 2010
7 Stage Success with Carl L Gould, News Articles / No Comments

Here are my answers to an on-line interview I gave regarding Steven Slater and his ‘leap’ from Jet blue Airways. Enjoy.

*What is it about Steven Slater’s actions that cause the public to rally and support him?

Most people can relate to being in a situation in life where they felt overwhelmed or stressed or just tired of doing something they just don’t feel like doing. Steven did what a number of people have thought of doing but just never took action on.

*How might current economic conditions have impacted/compounded Slater’s situation? *

It may be that there have be finical pressures that have been building up on Steven; or there may have been some word’ through the grapevine’ that there may have been jobs like his that would be cut. So he felt the need to go out on ‘his own terms’.

What does the strong public response to Slater’s actions possibly suggest? *

            Discontent with the slow recovery to the current economic conditions. Lack of certainty with regards to job future.

What are early warning signs of job dis-satisfaction, frustration, contempt for the public/clients, occupational stress, etc.*

            As early as the time when Steven was hired, a personality profile assessment could have been done to ensure that he was a good match for the position. An incident like this typically does not happen overnight…is there a mentoring, coaching or counseling program in place that would allow for employees to anonymously to seek help without fear of retribution by the employer? Was he tired,? Was he losing weight?  Did his eating or drinking patterns change? Were his moods different? Did he withdrawal from socializing with his co-workers? While this is just a partial list, these are some possible early warning signals.

What steps should frustrated employees take? *

            They could…contact a superior, write a memo, make sure they are fully utilizing their personal/vacation/sick days. On a personal side, making sure that they engage in activities that allow for stress relief i.e. physical exercise, socializing with family and friends, down time or any other activity that allows them to clear their head and recharge their batteries.

At what point should an employee throw in the towel? *

            Once an employee feels that they have taken every measure within their power to correct their situation and they feel their measures have been unsuccessful, they should plan heir exit strategically. Meaning they should secure new employment while maintaining a positive relationship with their current employer as not to burn any professional bridges.

What are possible consequences of going out with a bang a la Slater?

            On the positive side, there is a reality show waiting out there for him; he will get his 15 minutes of fame. On the negative side, he may find it very hard to find a job in the industry. He may find it very hard to find a job period.  On the other hand, if he was ever thinking of starting a business, now is the time. If he is unable to monetize on this incident rather quickly the expenses and overheads of managing his celebrity will catch up to him rather quickly.

Carl L Gould is the president and Chief DISCoverY Officer CMT international, LLC (www.CMTmentors.com), the farthest-reaching business mentoring organization in the world. Carl’s unique approach to executive coaching, business mentoring and performance training helps his clients achieve results worldwide.  His upcoming book, The 7 Stages of Small Business Success – From Startup to 7 Figures in Three Years or Less, will provide entrepreneurs and business owners a step-by-step formula to taking their businesses to the next level.

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