Do Business Well

More than half of American households (56 percent) bought flowers, seeds, shrubs, and trees for outdoor landscaping in 2003, down just slightly from 59 percent in 2002. Outdoor gardening is a passion for many, and a necessity for others. The American Gardening Association reports that 80 percent of U.S. households participate in some garden- related activity that usually results in the expenditure of money for tools, equipment, greenery, and supplies. Continue Reading »

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With consumers spending more money on landscaping and their lawns, it is not surprising the purchase incidence of garden equipment, furniture, and decor is strong as well. Purchase incidence of garden equipment, furniture, and decorative items for the garden (i.e., garden hardware) was 42 percent in 2003, down slightly from results of 47 percent in 2001. Continue Reading »

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20. Allocate cash received to the relevant sales ledger account

Some companies have suffered as a result of incoming cheques and cash being incorrectly allocated to customer accounts, thus enabling the person involved to redirect cash easily. This practice can go undetected for years unless steps are taken to check on it.

21. Check payroll calculations

Many companies operate bonus schemes which can be manipulated. Payment by results often reduces unit cost but it is essential that the results are measured accurately. Incorrect recording of batch quantities can result in higher wages and a higher unit cost. Continue Reading »

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Crime in a variety of guises is on the increase. One of the major growth industries of our time is the supply of equipment to companies and individuals for deterring the thief. New devices for protecting vehicles and contractors’ plant are now on the market to meet the rise in car and equipment theft. Your firm could be suffering a steady drain on its resources through petty or substantial theft. Save money by reviewing all aspects of security.

1. Regularly review your company security arrangements

The thief soon spots any weaknesses in security routines that have been established and practised over a long period of time. These practices and routines become known to all concerned, including the thief, and the tendency is for slackness to creep into the routines anyway. A review of security practices will act as a deterrent. Continue Reading »

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4. You lose your location. You can insure your building against destruction through fire, flood, or earthquake. You can also purchase business-interruption insurance that is supposed to give you enough staying power to reopen in a new place. What if you don’t have that insurance? Or you have a month-to-month rental, and your landlord gives you notice? Maybe you miss a lease payment, and the building’s owner holds you to the letter of the lease and kicks youout?

For many businesses, this type of disaster in the early going isall but insurmountable. This is especially so where there has been a large investment in build-outs, signage, or fixtures that can’t be easily transferred to a new location. Here are some approaches thatmight save your bacon. Continue Reading »

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BOOK VALUE

Each month or quarter you should be determining the company book value. This is the net worth figure on your financial statement. It’s the difference between your total assets and total liabilities using all the rules of accounting and taxation. As you’ll see, this has very little to do with the actual worth of your company.

LIQUIDATION VALUE

You would only rarely want to sell a successful business for less than liquidation value. You might do so to provide continued employment for loyal staffers, or some types of deals might include your continued employment or the receipt of certain royalties unrelated to the sale price. You arrive at the liquidation value by adjusting each asset to take into consideration its real value, as opposed to its book value. Next, you adjust liabilities to account for any amounts that aren’t going to be realized. Finally, there’s a cost of liquidation. Let’s look at all three for some examples: Continue Reading »

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Competition is fierce. In any given year in the United States, about ten thousand new QSR restaurants will open. “The barriers to entry for the restaurant business are pretty low,” Babrowski points out. “Anybody with enough money to line up rental space and get a little bit of equipment in it, and knows how to cook, can at least attempt to start in the restaurant business.” This means, she adds, that “there is almost a limitless stream of competitors,” though it is the “branded, organized competitors,” as she calls them, that McDonald’s concerns itself with most: Burger King, Wendy’s, Hardee’s, Taco Bell, and Roy Rogers. Continue Reading »

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