by Paul Simister
on June 16, 2018
Just like our earlier bank account example (link to the economic definition of profit), the money invested in your business could be earning a nice safe return in the bank…or you could aim for a higher but riskier return elsewhere.
You may have also given personal guarantees to your bank to secure a loan so your business is getting more money at a lower interest rate – and you should recognise that cost. [continue reading…]
by Paul Simister
on June 15, 2018
I believe your time as the business owner is enormously valuable and is often the biggest constraint that limits improved performance in the business.
And how well you use your time – which we will look at in Pillar 2 Your Inner Game – has a major impact on how well your business performs. [continue reading…]
by Paul Simister
on June 14, 2018
Let’s move from the accountants definition of profit (link)to the economists’ definition.
For an economist, profit is the difference between revenue and opportunity costs, not actual costs. [continue reading…]
by Paul Simister
on June 13, 2018
Ask an accountant to define profit and he or she will say something like:
“Profit is the difference between revenue and costs in a defined period of time.” [continue reading…]
by Paul Simister
on June 12, 2018
The full title of this second module in Pillar 1 Your Key Numbers is:
What Is Profit? And How Much Should You Make?
In this important module I am going to challenge your thinking with the aim of getting you to step out of your comfort zone.
I believe many small business owners hold themselves and their businesses back because they don’t challenge themselves. [continue reading…]
by Paul Simister
on June 11, 2018
The Profit & Loss Account (or P&L Account) is one of three primary financial statements (together with the Balance Sheet and Cash Flow).
It is a summary of the revenue received by a business in a period together with costs and charges for the same period, deducted to show the profit earned. [continue reading…]
by Paul Simister
on June 10, 2018
Financial Control means using financial measures (and other measures) to monitor the performance of your entire business system.
It avoids the ostrich system of you, with your head in the sand, not knowing what’s going on. [continue reading…]
by Paul Simister
on June 9, 2018
Many business owners have an uneasy relationship with money.
They know they want it – indeed the opportunity for making more money was one of the big driving forces behind the decision to start a business.
But they don’t understand it.
The numbers frighten them.
The jargon is confusing. [continue reading…]
by Paul Simister
on June 8, 2018
Having an effective performance measurement system is the key ingredient to knowing your business is under control and producing the results it should do.
Or if something goes out of kilter, you get to know about it quickly and you can bring it back under control by taking whatever actions are necessary.
Measures Are Essential For Independence From Your Business [continue reading…]
by Paul Simister
on June 7, 2018
Welcome to Pillar 1 of the Eight Pillars of Business Prosperity, my system for helping any type of business to increase profits.
The focus of Pillar 1 is on your Key Numbers, Measures and Performance Indicators.
Where You Are [continue reading…]