Guiding Your Business Out Of A Black Hole - Simple Numbers Intro
Simple Numbers, Straight Talk, Big Profits!
Are you ready for Simple Numbers?
I’m so ready!
Take the mystery out of small business finance with this no-frills guide to understanding the numbers that will guide your business out of any financial black hole. Author Greg Crabtree, a successful accountant, small business advisor, and popular presenter, shows you how to use your firm’s key financial indicators as a basis for smart business decisions as you grow your firm from start-up to $5 million (and more!) in annual revenue.
Why your numbers are lying to you (and why you are the cause!)
How labor productivity is the key to profitability and simplifying human resource decisions
Why the amount of tax you pay is your number-one key performance indicator
Every business starts with the seed of an idea, but only a few entrepreneurs can visualize the field all the way through the harvest, much less through many successive seasons. By seeing beyond the numbers, I have laid out the basic principles that can help entrepreneurs create a realistic vision of their business from the beginning through many bountiful harvests.
In this book Greg Crabtree shares his experience on how to lay a solid foundation to build and manage your business, which is based on hundreds of real businesses, not cocktail party advice. He starts with your dual role of key employee and shareholder and how something so seemingly simple can mess up so many businesses. Then he moves to teaching the connections among profits, cash flow, and the productivity of labor.
If you feel that your business is sucking the life out of you, you’ll learn why the black hole phase of business exists and how you can get beyond it to smoother sailing. With profitability comes taxes, and I will show you how to fearlessly face the tax monsterunder your bed. Once you get the broken parts of your business fixed, you need a monitoring system that is simple and constantly pulses the right data at the right time. At this point, you’ll understand the economic value of your business and have a clear vision of whether you should offer stock to partners or employees, sell the business, or keep it healthy and harvest the profits to build your own wealth.
This book is primarily aimed at business owners from startup to $5 million in revenue. However, you should read this book before you even start a business. Many of my peers in the Entrepreneurs’ Organization who have a business with revenue beyond $5 million have found the concepts clarifying and valuable.