I'm working with a small, family-owned manufacturing company. For a number of years they had been suffering from declining sales, and like a lot of companies, they just didn't do anything about it. They just assumed that the situation would get better all by itself. Then they began to see that they were running out of cash. Still they didn't do anything right away. Finally, when they were at the end of their rope, they reached out to me for help. I went in and assessed the situation and realized that ... [continue reading]
Welcome to the ProjectionSmart Blog!
We want to share with you our thoughts on business projections, cash management, small business, entrepreneurship, finance, startups, and business planning.
A business projection is not an accounting tool. It's a management tool. Whether you're starting a business or your business has been around for a while, understanding the numbers of your business is critical to your success. I've asked many entrepreneurs how they know it's the right time to expand their business or whether they can afford to hire a new employee. Their answer worries me because it's usually a shoulder shrug followed by, "I just go with my gut." You've got too much riding on your busin... [continue reading]
In 2018 CB Insights published the top 20 reasons why startups fail. They said there is rarely just one reason for startup failure, but they found the 20 most common reasons that startups don't make it. At ProjectionSmart we reviewed that list to determine how many of these reasons are addressed when the entrepreneur uses the Startup financial model and the Proof Plan. What we found was that the top nine most common reasons why startups fail are all addressed in the the Startup financial model and the ... [continue reading]
After beta testing ProjectionSmart Startup (for startup business) with 300 entrepreneurs, Bob and I recently held workshops with SCORE (the Service Corp of Retired Executives) and with 60 chiropractic students at Northwestern Health Sciences University who are about to graduate and start their own chiropractic businesses. We showed both of these groups the benefits of Startup and the Proof Plan, and it was very satisfying to see how quickly they grasped these key concepts, understood the numbers of their... [continue reading]
During my career I’ve turned around a bunch of companies, some of which were only a few weeks away from shutting down. As I look back at those companies, and at other companies that I straightened out and put back on track, I see that they all made some of the same mistakes. Being in a turnaround situation is very stressful, involving pressure from all sides: banks, vendors, customers, employees, and owners. So keep these common mistakes in mind with your business and avoid getting yourself into that dre... [continue reading]
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