Sometimes you know you’re stuck because you have a problem going around and around in your head without reaching an answer. Other times, you or your business might suffer from some of these symptoms:
- You feel conflicted about your business, as if you’re being pulled in at least two directions at the same time..
- Profitability is lower than you want.
- Cash flow issues regularly arise like being paid late by customers or having to fend off suppliers who want to be paid before you’ve got the money.
- You get to the end of the day and you’ve acquired more new jobs to do than you’ve completed in the last ten or twelve hours.
- Your employees seem to create more problems than they solve.
- You know your customers are disgruntled because you can’t give them the service they demand and you want to give.
- You’re unsure where you should focus the time you do have for business improvement in the future.
- Customers continually encourage you to cut prices just to keep their business, let alone increase it.
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This is a review of “Genghis Khan Guide to Business” by Brian Charles John Warnes.
Who Should Read This Book
- Every qualified accountant without extensive business experience at finance director/controller/chief financial officer level.
- Every business owner and entrepreneur.
- Every managing director or chief executive who is responsible for the profit and cash performance of a business and who doesn’t have complete confidence in his or her finance director or CFO.
How I Was Introduced To The Book
After I passed the final exams to be a chartered accountant, I was given this book to read by one of the partners in my accountancy firm who had returned to the profession after working in industry for many years. I was told that I’d learn how finance really worked in the real world, away from all the fancy theories I’d learnt to for the exams.
The partner was absolutely right. This book is fantastic but sadly, the follow-up Genghis Khan Business Handbook is not nearly so good.
The Focus Of The Book
Its main emphasis is on cash flow and break even point analysis with a relatively simple but heavily stylised financial tracking system that will get a business on the straight and narrow financially and keep it there.
The author uses the example of the barrow boy to show you that common-sense ideas about financial management can teach you how to run every type of business, even a complicated manufacturing business.
I believe an understanding of how profit and cash flow are generated is essential if you’re going to make the best decisions for managing a business.
- It was written a long time ago.
- It is likely to be hard to get and may well be extremely expensive.
- It suggests a monitoring form that is heavily stylised and belongs to the days before spreadsheets and graphical presentations.
I can’t recommend this book highly enough. I read a lot of business books and this is always in my top five while others come and go.
I can’t imagine a better book about the nitty-gritty workings of finance in a business.
I don’t know of another book like this and the problem with many “finance for non-financial manager” style books that I’ve read is that they are dull.
It’s a much gentler read but I was very impressed with Financial Foreplay by Rhondalynn Korolak.
I’ve been fascinated by the topic of differentiating a business or product/service for more than 20 years and I even have a separate blog called Differentiate Your Business.
Who Should Read This Book ?
- Business owners and entrepreneurs.
- Senior executives in big businesses.
- Product managers and marketing managers in big businesses.
- Business consultants, coaches and advisors.
Review Of Blue Ocean Strategy by W Chan Kim and Renee A Mauborgne
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Income Before You Buy is the best low cost business growth training aimed at small business owners that I’ve seen. It is so good that I stopped any plans I had for developing my own because I knew I could never match the scope and professionalism of this website based system.
>>>Income Before You Buy – affiliate link
Background To Income Before You Buy
It is one version of the business growth training websites developed by Karl Bryan and Adrian Ulsh.
>>>Income Before You Buy – affiliate link
In fact, it is Adrian’s own website. [click to continue…]
The Primary Deficit Sustainability Framework or PDS Framework is a way to monitor public finances and to see whether they are heading into or away from trouble and adverse bond market reaction.
I was reminded about it in James Rickards book, “The Death Of Money”.
The Key Factors In The PDS Framework
The key factors are: [click to continue…]
The full title of this fascinating book by Tim Morgan is “Life After Growth: How The Global Economy Really Works And Why 200 Years Of Growth Are Over”.
I’ve always known that there is a money economy and a things economy. What I hadn’t focused on was how the thins economy is underpinned by energy. The author argues that in effect we have an energy based economy and while the money economy has been inflated by the explosion in debts and Quantitative Easing, the energy economy is deflating.
Why is that?
Because we cherry picked the biggest and best, most accessible, most productive sources of oil, gas and coal first and slowly but surely, the old sources are exhausted and the new sources that are developed aren’t as good. [click to continue…]
Problems appeared in the world finance systems in 2007 related all the way back to mortgages given to poor people in America who were unlikely to be able to repay the loans. These mortgages were packed up, divided and sold into the finance markets across the world.
My intent is not to give a big explanation of what happened and why. If you want more details, I have provided links to Wikipedia. My objective is to help you to think about the future but you may benefit from reminding yourself about the recent past.
In September 2008 after some difficult months problems exploded in America with the saving of Bear Stearns, Fannie Mae and Freddice Mac and the collapse of Lehmans Brothers.
This led to the Great Recession.
I mentioned the efficient market hypothesis earlier. Too much faith in how well it works by policy makers and regulators has been blamed for the build up of the bubbles that caused the crash. [click to continue…]
Ever since I’ve been ill I’ve been amazed at what an incredibly complicated and effective system the human body is.
Things have gone wrong that I’ve previously taken for granted and I’ve been forced to learn how the different control systems keep everything working together.
The economy is the same.
It is made up of the many different decisions that the billions of people make.
It is best understood by learning a little about systems thinking. [click to continue…]
The Future Of Your Business And Wealth Is In Danger In Times Of Recession, Depression, Deflation, Inflation and Hyperinflation
Hindsight is a great luxury which we don’t have for our current and future decisions but we can look back on the past with more clarity.
The great prosperity the developed world has seen in the last thirty years has been built on debt and unfinanced promises of generous future welfare payments.
Spending by consumers, businesses and governments was financed from borrowing against future income at an increasing but unsustainable rate. The crash in 2008 was inevitable and the monetary and fiscal stimulus seen since then and considered necessary to keep the wheels turning, is storing up more problems in the future.
You can’t get out of a debt crisis by borrowing more and printing so much “funny money” that it debases the major currencies of the world.
Business Owners Don’t Have To Be Victims Of The Economy [click to continue…]
The Stop Start More Less Grid or process is a very effective way to keep track of the changes you will make to create the improvements you want.
It begs a question – what form should the grid or matrix take?
The Background To The Stop Start More Less Grid or Matrix
To my knowledge, I was the first person to start to write about the Stop Start More Less grid in my blog posting from July 2009 on my Business Coaching Blog although I’d used it for some time.
It was based on my thoughts on how to improve results using the 80/20 principle and recognising the constraints that every business owner works with – time, money and other resources. [click to continue…]