Metrics

Episode 60: Driving Salesforce Effectiveness – Don’t Lose Sight of the Mission and Purpose of Your Business

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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Episode 57: The Single Metric That Tells the Health of Your Business

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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Episode 56: Does Your Business Scenario Planning Include the Inverted Yield Curve and the SLOOS Report? It Should.

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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Episode 50: You Can’t Put Lipstick On A Pig!  – Signs Your Business May Be In Trouble

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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Episode 48: Building Strength Through Discipline in Your Borrowing Base – Part 2 of 2

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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Episode 47: Building Strength Through Discipline in Your Borrowing Base – Part 1 of 2

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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Episode 21: Your Financial Forecast: Not A Tool To Predict The Future, But A Tool To Create It

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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Episode 20: It’s All About Profit, Right? Think again. Check your ROA and ROE.

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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Episode 18: Making Your Financial Statements Come Alive

In this week’s episode, David and Eric discuss Financial Analysis. We had more to day on this topic than we realized – it may be the new series! Before diving into any specifics – How well do business owners or managers need to know their numbers? How well do they need to be able to…

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Episode 14: The Financial Drivers of Your Valuation You Can Control

We’re wrapping up a mini-series on Value Builder drivers within our series on Business Valuation   In today’s episode, David and Eric discuss:  Financial performance, Growth potential and the Valuation “teeter totter”.  In depth we discuss the three main moving components mathematically on the business valuation. These components are the inherent cash flows in the business,…

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