Small business budgeting

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Small business budgets come in many formats, types and degrees of complexity. In most cases though they serve three purposes. The first purpose of a budget is to establish performance targets over a specified period of time. Usually a budget plans for revenues and expenditures on a monthly, quarterly, annual and multi-year basis. Company managers and employees can then devise action plans to achieve the targets provided by the budget. The second purpose of a budget is to measure … [Read more...]

Financial analysis and small business health

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The financial health of a small business is one of the best indicators of its potential for long-term growth and success. The Federal Reserve Bank of Chicago recently published the results of its Small Business Financial Health Analysis. The results show that business owners who are knowledgeable about business finance tend to have companies with greater revenues and profits, more employees and generally have more success. The first step towards improving small business financial literacy is … [Read more...]

How to evaluate the Cuba opportunity for small businesses

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Since President Obama announced his intention to restore diplomatic relations with the government of Cuba, there has been tremendous speculation regarding the opportunity for U.S. businesses. Much of this speculation assumes that the law codifying the U.S. embargo will be changed and U.S. companies will be permitted to invest. Many analysts have arrived at the conclusion that Cuba represents a lucrative opportunity for U.S. businesses because: There are over 11 million consumers with nearly … [Read more...]

How to manage small business bookkeeping

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Angus Reid Public Opinion recently conducted a survey of business owners generating up to $5 million in revenues and employing up to 100 people to understand what they like and dislike about running their companies. The worst-ranking task was bookkeeping with 85 percent indicating they dislike it and 46 percent stating it was their least favorite task. The problem is that bookkeeping can be tedious, time consuming and the business benefits aren’t as obvious as those from sales or marketing. When … [Read more...]