Tag: cash flow

Spot a Zombie Company

Last week, I talked with several lenders, investors, and entrepreneurs. One of the topics that kept coming up was their client’s problems wasn’t cash – even though their clients tried to convince them of it. While cash was an issue that needed to be addressed, the problem instead lies in the leadership. A few weeks

Read More

How Growth Affects Cash Flow

Growth is great! Whether it is expanding into your third country or tapping into a new market, it’s an exhilarating process (especially for the entrepreneur). But it can also result in a crisis… You can’t fulfill orders; processes are being thrown out the door to just get it done; inventory isn’t leaving the warehouse. Growth

Read More

5 Cs of Credit – How to Be More Credit Worthy

Are you credit worthy? Right now, is your credit good enough for a lender to give you a loan or line of credit today? If your answer is no or if your not sure of your answer, take a look at the 5 Cs of Credit. This 5-point checklist allows loan officers to easily determine

Read More

Selling Your Business

Companies are constantly being bought and sold; so regardless of what position you are in or what industry you service, selling your business is one of those topics you need to know about. It’s a common misconception that the financial persons are overhead, are not valuable, and simply just count the numbers. But over the

Read More

Key Elements When Seeking Financing

This past week, one of my clients met with a banker to develop a new banking relationship. He hands the banker the company’s financial statements, expecting the banker to look at the income statement. Instead, the banker flips to the back of the financial statements to look over the balance sheet. As the coach, I

Read More

Traditions Turned Financial Fluctuations

Traditions turned financial fluctuations are to be expected in the American economy. Commercialism takes over this time of year with the holiday rush. With an overload of red sales tags on toys, electronics, clothes, and more, consumers are quickly adjusting to this being a norm.  Now with Thanksgiving is right around the corner, we are taking

Read More

What do you do with unprofitable customers?

Have you ever come across that one customer who you would do anything to get rid of? Have you ever questioned what to do with the customer that causes more strife than good?  Whether they’re a drain or merely a pain, these customers cost you money.  So what do you do with unprofitable customers?Business is a

Read More

Are you throwing money at your problems?

Growing up, I constantly heard the old adage, “money doesn’t grow on trees.” It’s meant to warn people that there is only a limited amount of money available to put to use. It’s easy to fall victim to the notion that any problem can be solved if you spend enough money on it. But, what happens when

Read More

Adjusted EBITDA

See Also: EBITDA Valuation Calculate EBITDA Valuation Methods EBITDA Definition Multiple of Earnings Adjusted EBITDA Definition Adjusted EBITDA is a valuable tool used to analyze businesses for the purposes of valuation and potential acquisition. Many also call it Normalized EBITDA because it systematizes cash flow and deducts irregularities and deviations. Use adjusted EBITDA as an

Read More

How long can a company lose money without running out of cash?

Only when the tide goes out do you discover who’s been swimming naked. – Warren Buffet Is the Houston economy’s metaphorical “tide” going out?  It’s hard to say, but some businesses are definitely feeling a bit “naked” these days.  They may not even realize the peril they’re in because they still have positive cash flow despite the fact they’re losing money.  This begs

Read More

5 Ways to Prepare for Seasonality

Seasonality can be brutal.  If your business is like ours, summertime is pretty slow.  The phones don’t ring, employees and clients are on vacation, nobody is available for appointments and not much happens in general.  Even if summertime is busy in your industry, chances are that there are other times during the year that business

Read More

Fire Your Customers to Improve Cash Flow

Recently, I was having lunch with one of our strategic partners. He was sharing a story with me about a customer they were having problems with.  He talked about how difficult the customer was to service. Consequently, that customer consumed more of the firm’s resources than other customers. But he was charging them the same

Read More
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content