CrackerJack Insights

Category: Business Management

4 Steps To Keep Your Finances on Track in the 4th Quarter

Posted on by Kelly Totten
  1. Forecast Revenue - Based on your year so far, historical numbers, and marketing plan, what revenue goals are achievable for the rest of the year? If you haven’t been doing well this year and you really need to bring your A game to 4th quarter, what are you going to do differently? In your review process, you should have pondered why your year hasn’t gone according to plan.  Use that information to inform your plans for the 4th quarter.  If you have been meeting your targets so far this year, review what is working for you and what you need to do to maintain the momentum.
  2. Adjust Spending – With your year to date information and your revenue plan for the 4th quarter, what changes need to be made to your spending plan?  Will you need increase labor spending to meet your 4th quarter goals?  Do you need to reduce labor costs to get your financial ratios where they need to be? Have you been spending your marketing dollars on things that aren’t working? Do you need to spend more on sales and marketing efforts that are working?
  3. Collect Aggressively – If your business is like most businesses in the b2b service arena, the first quarter is known for clients paying slowly.  To keep your company running smoothly in the first quarter, you must collect aggressively in the 4th quarter. Be vigilant about getting deposits on your fourth quarter work and get December invoices out as early as possible.  Ensure your accounts receivable team is staying on top of collections and do your best to get everything possible collected before everyone heads out for the holidays.
  4. Keep An Eye On Cash Flow – The first quarter collections slow down means you’ll have to be extra careful with your cash flow. Make sure you’re maintaining an adequate cash reserve to handle your critical bills and payroll during the first couple months of the new year.  If your historical trends show first quarter to be normal or strong for cash collections, you may want to pay forward some of your debt in 2010 to get the tax deduction this year (assuming you’re a cash basis payer). Also make sure you adjust your cash flow forecast to coincide with any revenue or spending adjustments.

Information To Collect From Your Bookkeeper At Termination

Posted on by Kelly Totten

I was recently asked to compile a list of information needed prior to terminating a bookkeeper.  I’ve compiled a list of things that you may need to retrieve from your bookkeeper, controller, or office manager below.

Even if you have no plans to terminate, pretend like you are firing your bookkeeper or controller and start getting access to anything you currently don’t have access to or cannot easily obtain without the help of the person you are terminating.  It’s important to have control over this information.  What happens if the office manager gets hit by a bus tomorrow?  Your business needs to keep humming along regardless of who is sitting in the bookkeeper/office manager/controller chair.

Termination Retrieval Checklist

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Is your business over weight?

Posted on by Kelly Totten

It’s common for small business owners to measure their financial health based on their income statement or bank account balance and deem their business “fit” if the bottom line looks good.  To reveal why this approach can be deceptive, let’s apply a dieting metaphor.

Only looking at the bottom line is the equivalent of “sucking it in” when you look in the mirror.  Sure, it looks like you’ve lost some weight, but what happens when you exhale? You might appear skinny for a moment, but that version of the situation isn’t accurate.

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Are you GIVING sales to your competitors?

Posted on by Kelly Totten

I have recently acquired a new hobby. I bought a glass kiln and I’m experimenting with fusing glass. On Saturday, I went to the local glass shop with the intent of purchasing a mold to slump a vase. I walked in the door and was immediately greeted by the owners who asked what I was looking for. I told them I needed a handkerchief vase mold and they responded that they didn’t think they had any. A look on the shelf confirmed it.

That’s it. The end of the story. I REALLY wanted to buy a mold. I had money in my pocket and I was ready to hand it over to them. They had great service until they didn’t have the inventory item that I needed. Then they dropped the ball. They sent me to a competitor. No, they didn’t say “try our competitor” out loud, but they didn’t offer me any other options. They could have said: “we can order one for you” or “the next shipment is due on XXXX”, but they didn’t.

I’m certain this local mom & pop shop needs my business, but they are lacking some pretty basic customer service skills. The absence of those skills is costing them money. I witnessed this very thing happen to another customer on my previous visit. I wonder how much revenue they’ve inadvertently given to their competitors.

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Don’t Pretend to Know It All

Posted on by Kelly Totten

I was talking with my daughter today and she declared her math paper was “chop filled” with information. I asked her if she meant “chock-full”. She replied: “No, kids in my class say chop filled. It’s chop filled, mom.” I could almost hear the “duh” behind her response.

Are you chop filled with with information too? Do you act as though you know everything and no outsiders could possibly understand? I think we all behave this way in at least one area of our lives or business. Often it’s not even intentional. We simply don’t know what we don’t know, so we assume we DO know. For your business to be successful though, it’s imperative to show a little humility. Admit to not being the expert on everything. Ask for help.

I work with a business consultant from time to time. The advice I get is often the same advice I give to others. Sometimes even when we do know the answer, it’s hard to implement the solution for ourselves. Gaining perspective from an outsider can yield great results even if you DO know the right answer. An outsider can often provide clarity or insight that you have overlooked. Sometimes we’re just too close to the problem to see the best answer.

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What Book Has Been Essential To Your Business Success?

Posted on by Kelly Totten

I recently began attending a peer group.  The question for our meeting this week is: What book or resource has been essential to your business success?

Interesting question.  The word business in the question automatically sends me down the business book path.  There are a lot of great business books, but have any of them been “essential” to my business success?  I’m not sure.  Certainly there are great ideas in many books, certainly some books are inspirational.  I just don’t know that I can say one business book has been “essential”…without it I wouldn’t be successful?

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Free Webinar June 9th: Beyond the Bank Balance

Posted on by Kelly Totten

Do you manage your business by the bank balance? Many busy entrepreneurs do but what we know is that managing your business by your checkbook is like managing your personal health by the scale. While the number on the scale is a helpful indicator, it certainly doesn’t mean you’ll get a clean bill of health from your doctor. Join us to learn about other financial tools to help you see, understand, and manage your business’ financial health.

Topic: Beyond the Bank Balance – Create a Dashboard to Manage Your Business for Profit & Growth!
Date: Wednesday, June 9th
Time: 11:30am-12:30pm PDT (2:30-3:30pm EDT)

Cost: None

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Redefining Work (and the power of mom guilt)

Posted on by Kelly Totten

I have a confession to make.  I constantly struggle with work-life balance.  Like many of my clients, I also find it hard sometimes to work on my business instead of in my business.

I was raised in Michigan with the good old farm work ethic.  We work hard, we work long hours and we don’t stop until the work is done.  Translation: Work is hard, work is NOT fun.  Intellectually, I know that work can be fun when you’re doing what you love.  I know that I need to spend time on my own business.  I know that my kids are growing fast and I need to focus on them too.

Intellectually, I know what I need to do.  I know what will make me happy and what can grow my business.  What I’m working to overcome is the guilt associated with redefining work.

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