The first time (or, to be honest, even the fifth or sixth time) you look at your profit and loss statement, if your background isn’t in finance or accounting, it can be a bit confusing. Don’t be discouraged. All you need to do is learn the accounting jargon, and approaching your P&L (also known as an income statement or revenue statement) will get easier every time.Read More
Replacing employees is time consuming, costly, and frustrating. It’s one thing to hire for a new position, but replacing employees you have spent time and money training is another. If you want to reduce costly turnover and create a more competitive workforce, follow these employee retention strategies for your small business.Read More
Cash flow is an important aspect of any business. And, it’s particularly critical for a small business growing on a shoestring and a prayer. In the hectic day-to-day operation of a business, it’s common to overlook the many holes in your small business through which your cash is leaking.
Are you comfortable losing $21,000 a year with your business? Of course not, but I ask the question to raise awareness about the important topic of high costs associated with employee turnover. The Society of Human Resource Management, the world’s largest association devoted to human resource management, reports this figure as the estimated cost of employee turnover when businesses lose three employees per year. The association estimates businesses lose an average of $7,000 every time an employee leaves the company.
Small business owners lacking surplus cash stuffed in a mattress or buried in the backyard are anxious, fretful, and stressed. And, rightly so! Anyone who is ever interacted with a financially-desperate, white-knuckled business owner has felt their desperation. It's not pretty. If the recent volatility in the economy has taught us anything, it's the need to build financial reserves.