“The single most important factor in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10%, then you’ve got a terrible business.” — Warren…
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David and Eric launch a new series focused on one of the most critical yet misunderstood topics in business: pricing theory and pricing strategy. This episode lays the groundwork for understanding how prices are set, why they matter, and how business owners can leverage pricing as a powerful tool for profitability and growth. Main Topics…
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In this episode, David and Eric discuss the current drop in consumer sales across the country. They remind us to focus on not just selling “widgets”, but to go deeper and to demonstrate to customers how your business or product can improve their lives. David and Eric also share tips for monitoring monthly sales goals…
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In this episode, we discuss the EVA metric which includes the opportunity cost of running your business. Many business owners think that positive net income means that their business is doing well, but is your business creating more value than it’s costing? EVA = NOPAT – (WACC * capital invested) forsook [fawr-sook] verb –…
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In this episode, we look at current and historical data from the Federal Reserve and discuss what the inverted yield curve tells us about the state of our economy. The SLOOS Report is a quarterly survey of senior loan officers of banks. According to their date, over 50% of banks are seeing a decline in…
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Today we’re highlighting some adverse trends that indicate problems are arising in your business. If your business is struggling because you’ve hit a plateau, or your business is headed in the wrong direction, you’ll want to pay attention to these warning signs of decline. Poor working capital controls will ultimately get your business into trouble….
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Today we continue the conversation around your borrowing base. This episode dives deeper into why you may want to consider a borrowing base to finance your working capital so that you can help your business meet its potential. We also discuss the importance of having healthy accounts receivable, and how to use it in the…
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On today’s episode, we’re discussing the mechanics of a borrowing base. This is an episode that will have value in the current economy, and will still have value in future economies. Discussion will involve current events, but ultimately, the goal is to provide solutions that will be applicable in any economy. This is a tactical…
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In last week’s episode, David and Eric talked about ROA and ROA and why it’s important to grow your margin, but not at the expense of ROA. In today’s episode David and Eric discuss Financial Forecasting. While many seek a tool to help them see into the future, we believe this is a tool that…
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In this episode David and Eric return to unpacking the importance of Financial Analysis for a business. Today’s discussion will revolves around Return on Assets and Return on Equity – which involve numbers from both the Income statement and balance sheet. These two together are used in a powerful way to analyze business performance. Linking…
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