In 1995 Michael Gerber wrote the classic business book The E-Myth. The “E” stands for entrepreneur and is not a reference to anything digital. Gerber’s Entrepreneur Myth goes like this. You have some incredible skill, something that you really enjoy doing and which you are really good at. The book uses the example of a woman who is a fabulous baker. She has learned her trade very well, she makes great pies, and her employer sells lots of her pies. Over time this woman suffers what Gerber calls the En... [continue reading]
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We want to share with you our thoughts on business projections, cash management, small business, entrepreneurship, finance, startups, and business planning.
Sadly, one of every two startup businesses fails within the first three years. But it’s possible to increase your odds by more than 50%. The number one criterion that separates successful startups from failed startups is this: Understanding the numbers of your business. Think about this. You know what you’re going to sell. You know who your customers will be, and you know how you’re going to market. But are you confident you’re charging enough? What will your startup costs come to? How much cash d... [continue reading]
I share a lot of stories from my experiences of companies that do not understand their numbers and the price they pay for that in terms of poor decision making or missed opportunities. Well, today I get to share an example of the opposite: A company that is adamant about understanding their numbers! Manufacturing Costs I have a manufacturing client that prepares quotes for prospects that might want to have them manufacture a part for them. To prepare a quote, my client wants to include all of t... [continue reading]
Effective this week, ProjectionSmart has adapted a subscription pricing model, so the fastest and simplest way to do a business projection now costs just $9.99 per month. There is no longer a rush to get it done in 30 days as there was before. You can subscribe at our low monthly price for as long as you need to get your model right. When it comes time for you to do a business projection, remember: QuickBooks and Excel don't have projection capabilities. Pro... [continue reading]
I met another company this week whose situation really illustrates the importance of understanding the numbers of your business. It is a service business, and they told me they were in a cash crisis. They also told me that they were on the verge of very rapid growth thanks to a new product that they were in the process of launching. They did not want to borrow any money or take on an investor during this cash crisis if they did not need to, but they were not even sure if they needed any money. Whe... [continue reading]
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